accepted offer
I had an offer that was called ‘the accepted offer’. I brought in an inspector within 3 days of the accepted offer. As I tried to move forward with the purchase, I was told today by the broker that ‘substantially higher offers have come in’. I thought that after I was accepted and started the…
I had an offer that was called ‘the accepted offer’. I brought in an inspector within 3 days of the accepted offer. As I tried to move forward with the purchase, I was told today by the broker that ‘substantially higher offers have come in’.
I thought that after I was accepted and started the inspection, the property was moving forward as mine. I know nothing is set in stone til the contract is signed…but has anyone experienced such a thing before?
I’m out $600 on inspection for a place that just got swiped out from under me.
Ethics are nice, but if there is nothing to back them up, they are often ignored. And while it is usually clear when a buyer is moving quickly to get an inspection and get into contract, sometimes the buyer thinks they are moving and the seller thinks they are not, or convinces self they are not when higher offer comes in. Sometimes buyers’ attorney is screwing their client by clearly not moving at the normal speed to contract, and the buyer is unaware of this. Or buyer’s attorney is trying, but board member of coop isn’t returning that attorney’s calls, because seller has accepted a higher offer and just hasn’t told the first buyer until the second buyer signs a contract.
The only thing that would change this is if real estate sales were conducted as they are in most other places, where the offer is in the form of a contract binding on both buyer and seller, with contingencies to get out of it, and financial consequences for otherwise failing to proceed.
My sense is that we don’t do this in NY because neither the buyers or sellers want to – they both gain the ability to change their minds for any reason from having the accepted offer be just a non-binding verbal agreement for the 2-3 weeks it usually takes to get into contract. Though it arguably serves the seller more.
And then, it probably serves the brokers the most. I’ve often noted how much easier their jobs are here – they don’t have to draw up, present, and get contracts signed the way they do in other places – they just pass information around verbally (and now via email) on offers.
Actually, I think I ended up agreeing more than disagreeing with rh in my last post, as I read rh again, but just a bit more emphasis on the ethics. Sorry, rh.
I disagree with rh. If broker tells buyer the offer is accepted, broker’s ethics and the value of his/her word are on the line. As discussed many times here, many believe it is ok to keep showing the property as a back up following an accepted offer because, for a variety of reasons, deals do not always go to contract, and I have been shown properties on that basis. Brokers advised me at the showing that there was an accepted offer.
If the buyer is steadily moving towards contract, which OP appears to have done, then there is no ethical ground for rescinding the acceptance. If seller thinks can do better, he shouldn’t accept the offer, and broker should be clear in advance with his/her client that that’s what an accepted offer means. Buyer has now spent money (inspection) based upon the understanding that the offer was accepted. What OP describes here is not good faith on teh seller’s or broker’s part.
And…’the real estate game’ as far as i’ve experienced it is all about pitting bidders against each other.
Again i say–take all the bids you want, make people outbid each other, fine. Just don’t tell someone to come in and inspect the place til the bidding war is actually over.
I don’t think the seller could do much anyways. The house looks barely lived-in and perhaps not even inhabited anymore. I think it’s an elderly owner.
As much as it’s a shitty thing to do, it’s totally legal and as you can see, happens all the time. Why out the broker? They are doing their job: getting the best and highest offer for their seller. They could’ve handled it better, by taking your calls to start, or letting you put in a higher offer, but that’s the real estate game. You don’t have the house until you close. A signed contract is binding, but deals fall apart even then.
That being said, everything happens for a reason. You’ll find something better. You’ll see.
I would strongly advise against 2:15’s advice. Do not contact the seller directly, that would be in poor form.
No way the OP is going to out the Broker, not while they still have hope for getting the place or recovering their cash outlay.
yes please out the company at least – trust they wont do it again….