Home Buying in Cedarhurst>Question Details

Leterps,  in Cedarhurst, NY

What would be the broker's motive to lower the sale price for a house on MLS for which the buyer has already signed a contract?

Asked by Leterps, Cedarhurst, NY Wed Nov 2, 2011

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Well this depends on what the buyers signed contract consists of. If there are any contingencies in the contract prolonging the sale of the property the sellers may be looking at trying to get a secondary offer on it in order to cause a bump. I'll explain. If the offer was contingent on the sale of the buyers house and a "bump clause" was added, then if a secondary offer comes in (and is accepted as a secondary offer) the 1st buyer with the accepted offer has the right to remove the contingency and buy the property without the contingency. If the 1st buyer chooses not to do so, then the secondary offer can be bumped up to the primary (if of course it is more "closeable" then the last. The seller may be reducing the price if the 1st accepted offer isn't (what we call) "closeable" in the amount of time they would like. Does this sound right?
1 vote Thank Flag Link Wed Nov 2, 2011
They may be acccepting back up offers in case the deal falls through or to use as leverage in case of a home inspection or other issue.
0 votes Thank Flag Link Mon Nov 14, 2011
None that i can think off, it doesn't make sense if the contract was already signed by both parties. The house is not taken off mls, the status will change from active to under contract (uc).
0 votes Thank Flag Link Sun Nov 13, 2011
There may have been a time constraint & in the event that the first offer did not go through a reduction in price would increase interest in the property & may bring in other offers in the event that the one and only offer did not materialize.
0 votes Thank Flag Link Thu Nov 3, 2011
I am not sure I am 100% clear on the situation, but if the sale goes through and the broker has lowered the price, the % of difference between asking price and selling price, if smaller, makes the broker look good.
0 votes Thank Flag Link Wed Nov 2, 2011
This is not a short sale and I believe the only contingency was getting a commitment letter within 45 days. The price was agreed between the buyer and seller and the contract was being drafted/revised between the lawyers. A week before the house was taken off the market the selling broker lowered the asking price by 20K. It did not make a difference in the sale as the agreed price was still undet the new asking price. Just want to know what the seller gains by lowering the price after a price has been agrred upon and subsequently the house was taken off MLS.
0 votes Thank Flag Link Wed Nov 2, 2011
It may not have been appraised as high as the agreed upon price, and the buyer and realtor may be concerned about getting the needed mortgage if the appraisal comes in too low.
Flag Sun Oct 5, 2014
Have you asked your agent the question....and are you in a fully executed contract, signed by all parties and was money exchanged...
0 votes Thank Flag Link Wed Nov 2, 2011
Is this a short sale? ......
0 votes Thank Flag Link Wed Nov 2, 2011
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