Realtor didn’t inform seller of back up offer — is this wrong?

[applejack]

Hello! I recently found a house that I wanted to buy, and requested a tour of the house with my realtor on a Friday, and then viewed the house on the following Monday. Meanwhile, over that weekend, the sellers accepted another offer. I viewed the house on Monday, loved it, and called that day to try to put in a back up offer. The realtor accepted our back up offer but didn’t present it to the sellers, presumably because she wanted to see if the existing escrow would go through. So, today I found out that the property sold for $690,000, while our back up offer had been for $825,000!!! That is a $135,000 dollar difference. Even if there were repairs to be made, they likely didn’t come to $135,000. I feel that the sellers agent was in the wrong for not letting the owners know that there was a back up offer for $135,000 more on the table. Am I wrong to think this? I am particularly worried because I am about to sell my own home in a few days. Now I am worried that the realtor won’t let me know about all of the offers that come through.

[poorgradstudent]

If the seller accepted another offer before yours was submitted, they basically are stuck. As long as the buyer fufils all their contingency obligations, in the state of California it’s very difficult for the seller to cancel after an offer is accepted.

If the seller knows they have a better offer and WANTS to make the buyer walk they can certainly do everything they can to make the buyer walk. Sort of like being a jerk to try to make your girlfriend break up with you rather than dumping her. The seller could refuse any and all repairs, be generally unhelpful in the entire escrow process, etc. It’s not totally ethical, but I’m sure it happens. Of course, if the original buyer walks during the escrow process there’s no guarantee that better offer will still be there a week or two later.

Although there is a big price gap there, offers are not always apples to apples. If that 690,000 was half cash it’s more attractive than an offer contingent on your home sale.

I’m not sure what the legal obligation is for the selling agent.

[moneymaker]

I’m not a realtor, but I’m pretty sure the selling realtors responsibility is to present any and all offers to the sellers.

[UCGal]

Was it already in an accepted offer/under contract when you made your offer? If so, I think you’re out of luck.

[The-Shoveler]

I think UCGal’s got this one,

If the first (or previous) offer was accepted by the seller, the only one who can break it is the buyer that is the way I understand it.

presenting your offer to the seller after the first offer was accepted probably would not get you anywhere unless you could bribe the other buyer to drop the contract.

Anyway IMO.

[applejack]

Yes, they had already accepted another offer. If only they had waited a few more days they would have had an extra 135k in their pockets (minus realtor commissions). I guess I have learned that when selling my own house, I won’t accept any offers when more showings have been scheduled! My offer was close to their list price, but I guess they accepted a low ball offer. 🙁

[bababooey]

[quote=applejack]If only they had waited a few more days they would have had an extra 135k in their pockets (minus realtor commissions)[/quote]

How do you know their offer was 135K less then your offer? All you know is that it sold for 135K less then list price.

Perhaps it takes 135K to fix a foundation, remove the mold, etc.. It’s sure easy to sit back now and say you would have paid 135K more regardless of the issues.

[Author]

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