Agent relisted property after my offer accepted.
Hello agents, I’m posting to figure out if my agent acted improperly or just sloppily.
Backstory, I call an agent about a bank owned duplex that she had listed but had expired. She explained how that duplex had a title defect so the sale fell thru, but asked if I was interested in a cheap piece of land with a boat slip, and I said sure!
The land was purchased six years ago for 30k, went to foreclosure, bank took it back for 21k. She listed it for 10k for a year, didn't sell and sat unlisted for another year. She tells me she is about to list it again but thinks the bank would take a low offer right now before it goes on the MLS.
I officially offer 3k, sign all the paperwork to make her my agent in a dual agent capacity, and a few hours later she texts me and says the bank accepted my offer! Awesome, I think. She tells me it will take a couple days for the bank to officially sign and accept my offer. A couple days go by and I text to ask what’s next. She says “sorry the bank wanted me to list it again before officially accepting your offer and now there are multiple offers, so just give me your highest and best.” The new listing is for $3k, so of course that generates lots of offers because other lots with boat slips in this neighborhood are now for 20+.
I don’t think she is trying to be shady, but it seems like I was misled to believe that I was getting a deal before it went to market. I know she has an obligation to the bank as the seller, but I feel like she failed in her obligation to me as my agent. I wanted to get the opinion of agents about this, although I think since the acceptance of my offer was just verbal there is nothing I can do but bid higher.
Thanks for listening to my rant!
Offer not valid until it is signed-around. I think she spoke for the bank too quick - $3K seems like a real haircut.
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
Probably shoulda offered close to half of what it’s worth. What’s in it for the bank to take an 85% reduction? Would they even get $1 after costs and commissions? They’d probably have to pay to get rid of it below $5k? Realtor should have told you to put in an offer at the last listing price, though you probably still wouldn’t have gotten it. Hard to tell someone the value of their real estate has gone down 90% in the last 6 years during an insane real estate market.
I’ve offered $100k over the bank’s asking price and not gotten it.
Unless you have a signed agreement, she is not your agent. She represents the bank and therefore must abide by there wishes. A verbal acceptance is not valid until all parties sign the contract
@Bill Brandt
Yes maybe too good to be true, but it was her suggestion to offer $3000 and it was quickly verbally accepted. I know that plus $2 can buy a cup of coffee, but still disappointing.
@Greg H.
Yes we signed a buyer agency agreement. I know verbal agreements carry no weight, I just wish she had made sure the contract was solid before she told me my offer was accepted.
She spoke way too soon...she should have waited until everything was signed.
This is a tricky situation for an agent. From what it sounds like the bank just rescinded their verbal acceptance which like other have said is totality legal because its not in writing. As an agent its tricky because every buyer wants to know as soon as the seller has accepted their offer even if its only verbal. Its hard as an agent to have the knowledge that the seller accepted the offer verbally and not to share that with the buyer while you are waiting for the seller to sign the purchase agreement. They should have stood by their word and accepted the offer in writing like they said they would but unfortunately theres is noting really an agent can do to force them to do that.
#3 Managing Your Property Contributor
She signed the paper work to represent you and when she relisted it at the bank's request, she should have told you not had you find out by seeing the listing. I wouldn't be impressed.
Guessing--the regular contact she has with the bank accepted the offer and signed off, but the higher ups who have to sign off on the contract did not agree. If so, agent can not control that, but she should have told you as soon as she knew.
@Matthew Wilson similar thing happened to me in 2008. A short sale of condo listed at 28k. I made offer thru agent and got back a verbal OK. Three days later agents calls and said bank needs 33K for the deal. I was pissed but it was still a good deal so I bought the property. I have made good Cash income for 12 years and property is now worth 95K. So look down the road a bit to see if it's going to work out. If this is in a good community, waterfront and dockable it has a lot of upside
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
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#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
The bank probably has a fiduciary duty to their investors to generate the highest offers possible. Rare probably would they sell off market. Some want it on the market a certain amount of time before they review offers. I know this doesn't feel good when you think you have a done deal, but that's just the reality of it. Sometimes the asset manager says yes, and the boss says NO...get it on the market. Your agent probably thought she was helpful and jumped the gun a bit, maybe even the asset manager said they thought it would work and she relayed that to you...and it worked until it didn't.
I always say it is not a done deal until it is signed and not really a done deal until the money is in the bank. Unfortunately it does happen now and again.
Best wishes...make your best offer and enjoy the summer on your new slip.
Originally posted by @Matt W.:@Bill Brandt
Yes maybe too good to be true, but it was her suggestion to offer $3000 and it was quickly verbally accepted.
Look up parole and real estate contracts. Might be good training.
Update: I upped my offer to $4k and the bank accepted and actually signed it this time! Thanks for all the replies and fingers crossed nothing weird happens.