Hello BP community,
I am currently pursuing a 8-unit multifamily property. The seller's agent accepted a 2nd offer after the seller signed my LOI.
This is what happened.
1- I submitted a first LOI, the purchase price was low and it was rejected. I updated the purchase price and submitted a 2nd LOI.
2- The seller signed and sent me the LOI back.
3- On Thursday, the seller's agent notified me that I needed to send them a contract in order for them to cancel the showings scheduled for Saturday. On Friday, I submitted the PSA to the seller's agent.
4- Today (Tuesday), the seller's agent called me, stated that they went ahead with the Saturday showings and now have two offers on the table. He added that the other offer seems better than mine because it is full price.
5- He suggested that either I update my offer and resubmit or I can keep the same offer. I told him that I was staying with the same offer.
6- Less than 3 hours later, he called me back and stated that the seller is okay with my offer, but will prefer to sign the PSA after I do the inspection. After the inspection, if I still want to move forward with the purchase, then the seller will sign the PSA.
I don't understand the game that the seller's agent is playing and i am seeking advice from the BP community.
Your title is a little confusing. Did the seller accept another offer?
An LOI is just that, a letter of intent with intent being the operative word. It is not a contract which is binding and enforceable so the agent / seller is not obligated to stop marketing the property. Even when a PSA is in place, generally there is nothing to prevent an agent from soliciting backup offers (other LOI's) in case you do not close for whatever reason.
The seller / agent seem to want to move forward with you but do not want to 'tie up' the property until they are more confident that you will close. Many sellers / agents consider the inspection (on your own, with a contractor or by an inspector) as a sign that the person is serious as it is a commitment of time and possibly some money.
As well, an inspection 'should' uncover any issues / damage and can be addressed in the PSA vs doing it after contract and used for 're-negotiations'.
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