Changing listing price AFTER placing a bid.

[Curtis Deckard]

Hi everyone.  I recently put a bid in on my second rental.  From what my realtor told me the seller was "in tax trouble" and was wanting to dump some of his properties quickly so this property was listed at $24,900.  It cash flowed at $850 a month ($400 after expenses) so it was a great deal I wanted to jump on ASAP.  I took a look at it and met the seller.  There were two new furnaces and two new water heaters.  The roof was in decent shape etc.  So I put a bid in after doing my due diligence.  When it came time for a response from the seller, he said he had changed his mind and wanted $30,000.  Nowhere on the listing did it have $30,000.  Being somewhat of a newbie, my question is, is this legal or allowed?  I was thinking if a listing agreement is a contract, how can that be changed AFTER a bid is placed?  Any information would be appreciated.  Thanks in advance.

[Ryan Murdock]

At least in my state until you have a signed purchase contract with the seller he/she can do whatever they want with the price or simply not sell at all. What you are describing isn't exactly "normal" but it isn't illegal.

The listing agent may be able to make a case against the seller that they brought a ready, willing, and able buyer and are due a commission but that's an entirely different issue.