Home Buying in Milford>Question Details

skacp, Other/Just Looking in Milford, PA

what rights do i have if a listing agent says i need to make a highter bid? i was under the impression i was the only buyer?

Asked by skacp, Milford, PA Wed Dec 18, 2013

i placed 1000$ binder down on a condo that is with a re-location company. the agent submitted my offer and the sale is cash. the binder was put down on a friday, the offer on a saturday. it is now Wednesday and the agent told me the listing agent has another offer, and since i wasn't in contract (offer not yet accepted by relo-company) anyone can bid.... i was further told the bid is from the listing agents office... and i have to submit my final and highest offer by tomorrow at 3pm. it is an mls listing and i feel something is just not right here... please help and inform how i should go forward.

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thanks christopher, i totally understand, but obviously feel cheated. i am purchasing this for my elderly parents and i feel they are just trying to get more money out of us. is there anyway i can deal with the relocation company directly? i am really upset and feel so used. the real estate agent assured me we were it, that she was contacting the listing agent first thing in the morning, etc. i have the email she sent her with the bid, etc. how soon should the listing agent submitted my bid? isn't there a clause in good faith? how do i even know the listing agent submitted my offer? it just doesn't add up. our offer was for 18 thousand more than the purchase price of a year ago... while the unit is lovely, the agent essentially told me what to bid, i went 2000 under thinking they would counter. which, may be happening with an inside buyer. how is this ethical? is there a board of real estate ethics committee i can contact to investigate?
1 vote Thank Flag Link Wed Dec 18, 2013
Sorry but there is nothing you can do. They responded to your offer and they have another offer. It happens and when it is a buyer from the same office it does sound shady but it happens. If you like the home go with your best and final and hope that it is enough. This is typical for alot of Re-lo homes. Best of luck to you.
1 vote Thank Flag Link Wed Dec 18, 2013
Nothing really unethical about this. Even if you are the only buyer the agent maybe just using this as a scare tactic, offer what you feel regardless of the pressure you feel. The worst that can happen is you get a no, or a counter offer. Either way, this is the name of the game being played now, if you really want it raise your offer, or call their bluff. Remember price isn't always the only incentive that sellers see. Closing date and probability that the deal will close is also important when considering an offer. They haven't accepted the other offer as well, so you may have leverage. Best of luck.
0 votes Thank Flag Link Thu Dec 19, 2013
I went through this twice in 6 months in Milford when I was working up there. My broker recommended doing a sealed bid presentation. We asked for both customers to put in their highest and best offer in a sealed envelope. Both agents were present when the offers were opened. That way, no one can change their offer (including the listing agent's client) and you are 100% sure of who really had the higher offer. It is still up to the seller to chose which offer... but at least you will know if you were truly outbid. Put in the offer you are comfortable with and best of luck!

Scott
0 votes Thank Flag Link Thu Dec 19, 2013
Also note, when your agent meets to open the bids, if there is not another offer presented at the deadline, they should negotiate back to your original offer.
Flag Thu Dec 19, 2013
You have the right to increase your offer or find another home. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Thu Dec 19, 2013
When a buyer places an offer and the seller accepts...how do you think the seller feels when the buyer 'renegotiates' the price based on inspection results. "Cheated?"
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Then the buyer stands aside as the lender attempts to impose a lower value based on a fiat appraisal and 'renegotiates' the price lower. How do you think the seller feels? Cheated? Be aware, if the appraisal comes in higher the negotiated price NEVER increases. Yep, the seller just might feel cheated.
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And when the buyer misses the closing date, blames lender, and seller is threatened with the deal for the home they are buying and the home they are selling falls apart. How do you think they feel? Cheated?
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Then comes the 'buyers sole discretion' clause in most purchase agreements. This if for the sole purpose of allowing a do-over for the buyer while the seller inherits the liability. Once more the SELLER is the one who is 'cheated.'
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The process is so biased in favor of the buyer, for a buyer to express a protest reveals they truly do not understand the process. When there is a lack of understanding, it human nature to look for someone else to blame. Buying and selling real estate involves negotiation. What you are experiencing is what negotiation looks like.
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Your options...raise the offer..it you want the place.
Affirm or resubmit previous offer.
Submit a modified offer.
Submit lower offer.
With draw offer.
But you must understand, the dance isn't over yet.
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There may or may not be another buyer. If their is, and you want the place...let the pros battle for you. Second guessing him/her isn't going to serve you well. Rely on the guidance of YOUR agent.
0 votes Thank Flag Link Thu Dec 19, 2013
These situations happen, buyer's can place their highest and best or look for other options. Sometimes when seller's ask for highest and best, the seller loser both buyer's due to the buyers walking to find different homes.

Best of Luck.
0 votes Thank Flag Link Thu Dec 19, 2013
Raise your bid or walk away. A offer isn't a contract and the seller may accept any offers that come in and respond as they wish until there's a signed contract.

The listing agent isn't the seller, it's the Relo company.

Hopefully you are working with a buyer broker and not the listing agent themselves who regardless of whatever they may say to you will always favor the Relo company as they supply a steady stream of business that they won't jeopardize.

Put aside the fact that the other offer is coming from the same company, that really shouldn't matter though with some companies it does. Note this isn't illegal it's simply sleazy; and these companies should be held accountable for their actions and vilified on social media sites until they learn that their actions have repercussions. If you're willing to pay more then make your best and final offer and put a 24- 36 hour time limit on it,. I don't know whether your original offer had an expiration date/time on it but all offers should be time limited and not open ended.

Hope this helps.
0 votes Thank Flag Link Thu Dec 19, 2013
There's nothing that says you "must" comply with the listing agents request for an increased offer. But then you are rolling the dice and embracing a big chance of falling out of the hunt. The choice is yours.....

Good luck,

Bill
0 votes Thank Flag Link Thu Dec 19, 2013
skacp, let's start with the reality that the agents are probably not in cahoots in the real estate office. Even if they were, the relocation company - which is not warm and fuzzy to deal with - could not possibly care any less.

I would love to advise you, given that I've never met your or seen the condo, and so my advice is: if you don't trust your real estate agent, submit your final and highest offer tomorrow before 3pm. If you trust your real estate agent, take their advice.

All the best,
0 votes Thank Flag Link Thu Dec 19, 2013
Actually this is happeninhg more often with fewer properties on the market. If the office is large, it stands to reason that the other offer may be coming fro within. If you like the condo and it is a good value, offer your highest and best. Ask your Realtor to do a market analysis to make sure you don't overpay ina bidding frenzy.
0 votes Thank Flag Link Wed Dec 18, 2013
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