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We just gave an offer for a house we like. It is a strong financial offer, close to what the seller is asking and with a good down payment. We're pre-approved for more than that and there are no sale contingencies on our side. We know there will not be any closing problems due to us.
Our agent was informed that they already have an offer they are negotiating with and are considering our offer as a backup offer.
What does this mean? If our offer was stronger than they have, why would they negotiate with someone else and not us ? Or do they have a stronger offer or have they already accepted an offer?
Is there any other way for us to get back in the game? or do we just wait and hope that the other offer falls through ?
your contract should state that your offer is only good for 48 hours and an answer is needed in that time. Remember, it's a BUYERS market...not a seller's. I am sure they would be quick to answer you.
That's not necessarily true. Just because it's a buyer's market, it doesn't change the fact that the seller is in negotiations with someone else. If they are pressed to give a quick answer, it may be a flat out no. I don't think in this case, the seller is playing games.
To the OP, you don't know how far they are into the process with the first offer. If they've already signed off on some things and are just working out details, they cannot just walk away from that offer. If something does not work out (it could be any number of things), then the seller goes to offer #2, you.
I would get your agent to find out when they will know for sure whether the other deal is a go or not so you can move on. You most certainly can give them a deadline, but know that it's possible they won't have an answer by then. Depending on what they tell you, you can either wait it out or withdraw your offer.
"Negotiating with" implies that there isn't an accepted offer yet, otherwise the listing agent should have said that there was an accepted offer and they were just working out additional details (e.g. addendums).
If there is already a contract in place then you do indeed take the backup spot, but make sure the listing agent clarifies where exactly in the process the seller is with the first offer.
You want to be sure your offer is presented to the sellers immediately if it has not been done already. Sometimes less than scrupulous agents break their fiduciary duties to their clients because of greed (e.g. the other buyer is also the seller's agent).
Real Estate law in each state will have little differences. It is normal that a seller will be presented with all offers unless the real estate broker/agent is instructed to do otherwise by the seller. There are an number of ways to handle a multiple offer situation. One way is to pick one of the offers and negotiate. This may be the approach that is being taken here.
Normally, if one offer is chosen over another it is because the offer appears to have better starting terms to the seller. For example a seller might look stronger at a cash offer over an offer with a financing contingency. It's also common to suspect something unethical is going on when you are not the selected offer.
We just gave an offer for a house we like. It is a strong financial offer, close to what the seller is asking and with a good down payment. We're pre-approved for more than that and there are no sale contingencies on our side. We know there will not be any closing problems due to us.
Our agent was informed that they already have an offer they are negotiating with and are considering our offer as a backup offer.
What does this mean? If our offer was stronger than they have, why would they negotiate with someone else and not us ? Or do they have a stronger offer or have they already accepted an offer?
Is there any other way for us to get back in the game? or do we just wait and hope that the other offer falls through ?
Please help.
Thanks.
IF they are already in negotiations that means the pencil was put to paper and it has to see itself through until they reach an agreement. If no aggreement then they can approach your contract. That's ethecial and you would want the same if it happened to you.
IF they are already in negotiations that means the pencil was put to paper and it has to see itself through until they reach an agreement. If no aggreement then they can approach your contract. That's ethecial and you would want the same if it happened to you.
This is inaccurate in my area of North Carolina.
Anything less than a signed contract means the Seller is free to negotiate to contract with other buyers.
IF they are already in negotiations that means the pencil was put to paper and it has to see itself through until they reach an agreement. If no aggreement then they can approach your contract. That's ethecial and you would want the same if it happened to you.
Again, each state has different real estate laws, but I have never heard of a state that a seller would be disadvantaged simply because someone made an offer and negotiation had begun. Until a legally binding agreement (a contract) exists the seller may negotiate any and all offers.
I think there are probably more details. The OP said negotiating, but it's possible something has already been signed and they are just working out details. The seller would be a fool not to accept a second contract as a backup. We did when we sold our last house. Two offers came in at the same time and we accepted the stronger offer and kept the second as a backup even though it was less than ideal.
Just curious here, what reasons would a seller have to not want to look at and consider all offers, provided that the property is still an active listing?
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