Agent lied about counter-offer (foreclosure, sales, non-recourse, price)

[Zyngawf]

Originally Posted by New-in-NEO

If I overpaid based on my agent misrepresenting the status of my initial offer, I've potentially lost $10k



They accepted at $105k. This is a short sale.


.

You haven't overpaid if you haven't bought the house. It really sounds like your agent doesn't know what he's doing, but I don't think suing him is the answer. If nothing is in writing you haven't bought anything, but I will say that your description of what happened is hard to make sense of. Did the seller sign anything?

[manderly6]

Withdraw your offer and offer again at 95K. See what happens.

[Zippyman]

Originally Posted by New-in-NEO

Hi all, obviously this question may get answered by a lawyer, but I'm curious as to if there is anything there.

I'm 24 and made an offer on my first home. It was a short-sale and I got a counter offer 3 days later. I counter offered again, and the counter has been accepted (3 months later). Here's where things get hairy.

I showed my Dad the contract, and he asked where the counter-offer was. I was told it was all verbally done, my father buys lots of commercial real estate, so he knows the process pretty well, he said that's unusual, but that there must be something in writing, especially since it was a short-sale. It's especially unusual to him that the first offer was countered 3 days later, then the next took months to accept.

At the risk of ruining your illusions, I'll say this - your dad doesn't know what he's talking about, and really ought to refrain from giving advice outside his area of expertise.

[davecj]

Originally Posted by Zippyman

At the risk of ruining your illusions, I'll say this - your dad doesn't know what he's talking about, and really ought to refrain from giving advice outside his area of expertise.

Care to explain? Yes residential counters can be done verbally but of course it is better to have it in writing.

[Avalon08]

If the story is correct as you are telling it, it's appalling that two agents would collude like that because they apparently thought your first offer wasn't unworthy of presenting. So you are saying you signed an official contract at $95K, didn't receive anything but a (supposed) verbal counter-offer via your agent, then you had to sign a whole new official contract for the $105K...right? I've never done it that way, but I've never been involved with a short sale.

How badly do you want this house? I personally would be furious that my first offer was never presented, and I wouldn't give a penny in commission to either one of these lying sacks. I would also report both agents to the state Real Estate Commission for ethics violations. Hopefully you still have that original contract showing a $95K offer? It really sounds like they took advantage of your youth and inexperience.

[Zippyman]

Originally Posted by davecj

Care to explain? Yes residential counters can be done verbally but of course it is better to have it in writing.

His dad says it's "unusual" to get a counter in three days, and an acceptance months later on a short-sale? That's standard practice.
Once the offer gets to the bank, their counter-offers are nearly always verbal.
The ops dad doesn't know the basics.

[Avalon08]

Originally Posted by Zippyman

His dad says it's "unusual" to get a counter in three days, and an acceptance months later on a short-sale? That's standard practice.
Once the offer gets to the bank, their counter-offers are nearly always verbal.
The ops dad doesn't know the basics.

Is it standard practice for the first offer to be withheld and a fake story concocted about a counter-offer?

Whether the OP's father knows the exact details about the short-sale process, or not, it was HIS real estate common sense that raised suspicion and eventually led the OP to the truth about this shady deal.

[fallingwater]

Well the way I am understanding what happened is this. Inexperienced agent consulted an agent in the office about your 95K bid. The agent in the office said the bid was too low, tell your guy he needs to counter to 105k. So your inexperienced agent comes back to you (without submitting your first offer) leading you to believe it was a counter and tells you to bid 105K and boom you get the house.

Is the other agent the listing agent for the short sale?

Yes its shady. Contact the broker of the firm whether you want the house or not. You need someone keeping an eye on these two.

[Brandon Hoffman]

First, go hire a real agent that does it full time next. You already said you would so that's done.

Second, maybe I misread this. It's a short sale, so your offer is first accepted by the seller and then sent to the bank. The seller countered you verbally and now the offer is being reviewed by the bank. Verbal counters are common in my area and then everyone signs/initials the changes so I can buy that.

So you submitted a written offer of 95k, seller verbally countered at 113k, you verbally countered at 105k. It was accepted, signed, and submitted to the bank? If that is right as I understand it then I don't see any evidence foul play. You said your offer was never submitted but if they countered it had to be submitted. If you're upset it wasn't submitted to the bank at 95k you shouldn't be. The seller owns the house and has every right to accept/reject/counter an offer and then submit to the bank. If he felt your offer of 95k was too low to be considered, which he apparently did, he should have countered. No point in tying the property up with an offer the bank won't take.

[manderly6]

Originally Posted by Brandon Hoffman

You said your offer was never submitted but if they countered it had to be submitted.

I believe what the OP is saying is the actual seller never countered. The agent or agents just told him that verbally without ever submitting the original offer to the seller.