Can a realtor have clients take a lesser $ offer because the buyer is with the same agency?

Question

We put a higher bid in on a house than the other offer they had. We were with a different realty company than the seller's. The other offer they already had was with the seller's company. They told us our offer was better, and went with the other offer AFTER the other offer upped their dollar figure to JUST above ours, though we were not allowed to put in another offer to beat theirs. Why wouldn't you want a bidding war to get the most for your house, and is it legal or ethical for that to happen the way it did?

Answer 1

I'm not sure if it's legal or ethical, but it's probably done a fair amount. Have you ever sold a house? Consider this deal from the seller's side. They are probably VERY anxious to sell the house, especially in this market. Here's two bids, one for a little more than the other. Maybe the lower bid is more attractive in every way except the price, - better qualified buyer, more escrow money, no contingencies on the buyer's house selling, financing is already in place, etc. If the seller can get this buyer to up the bid just a bit, they'll jump at the deal.

Also, I don't know how your area handles it, but in mine, if there's a full-price offer, I think that the uniform buy/sell agreement obligates the seller to accept it, assuming that the other terms are reasonable. The idea is to keep the seller from developing cold feet, and raising the price to keep from selling or owing the commission.

One piece of advice: Never fall in love with something that can't love you back. A house is just a house. There are always others out there, especially in this market. Love a spouse, a kid, a puppy. Treat a house as a business transaction. And that means avoid bidding wars unless the house is absolutely stellar, and underpriced.

Answer 2

I'm not sure I totally understand your question. But you were out bid on a house , correct? Did you tell the agent working with you that you would go higher? If not that could be where the problem lies. See if the other agents buyers told them to offer a higher price in a multple offer situation, chances are the agent already had an offer written at a higher price. And because you did not tell your agent to do the same thing, the sellers accepted that higher price, you were legally outbid.

Because none of us were there and really don't have the particulars, it is difficult to know exactly what happened.
I know it is fustrating, but you will have better luck next time.

Answer 3

Her fee isn't too extreme, yet is is negotiable. whether - negotiation of commissions is a few thing finished formerly a Realtor brings you an grant. don't comprehend how the regulations are in Florida, yet in Texas, the settlement on the marketplace is a settlement between the customer and the supplier. (sure, the Realtors help the customer and supplier in negotiating the settlement and the Realtors do fill it in) The commissions paid out is on a separate settlement altogether. additionally, a Realtor in Texas ought to lose their license for writing an grant contingent upon their fee. She ought to in no way have introduced you an grant or maybe disclosed the call of her customer until commissions have been settled. Now you have an grant you are able to probable settle for devoid of dedication to pay any Realtor costs - yet, like I mentioned - i don't comprehend the regulations in Florida. this is invaluable to to study with the community board of Realtors or the state licensing organization there.

Answer 4

In our area we have an escalation clause that can do just what you described. It's legal and ethical. Maybe that's what happened?
A bidding war is dangerous because you can lose both offers. Seen it happen!
The best way is to get someone under contract as soon as you can.
Good luck.

Answer 5

to be honest the other people probably signed off of contingencies or the agent took a commision cut.

Answer 6

sounds like a crooked deal to me.