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Old 09-11-2013, 12:48 PM
 
396 posts, read 430,507 times
Reputation: 247
Default Seller accepted my offer, but now has offers $10K higher. Advice!

After the seller signed my written offer, the seller changed their listing to "Back Up Offers" and the listing agent continued to show it to other buyers. My Request for Repairs was very simple (three items worth about $300 in parts and handyman labor), but the seller denied it. No big deal; I can do the repairs on my own. However this denial revealed some information to me:

My agent questioned the listing agent about the Request for Repairs. The listing agent said that since signing the contract with me they have received an all-cash offers over my offer (hinting at $10K higher) and even have financed offers above asking price. The listing agent said it was fine if I walked away (over not having any repairs done); they would release escrow money back to me. I am not walking away.

Won't the sellers be looking for any reason to void my contract? One of the things that benefits me is that I am set to close next week. My offer is all cash-in-hand with no contingencies to sell another property first. Their property is already vacant, so they won't be needing more time to pack or move. But, I feel a little unsettled knowing that there is a financed Back-Up offer at least $14,000 higher than mine. What should I as a buyer beware of in this situation when their are much higher Back-Up Offers?
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Old 09-11-2013, 01:11 PM
Status: "I am not Groot." (set 6 days ago)
 
Location: Cary, NC
19,237 posts, read 29,636,612 times
Reputation: 16029
Quote:
Originally Posted by Sky-Blue View Post
After the seller signed my written offer, the seller changed their listing to "Back Up Offers" and the listing agent continued to show it to other buyers. My Request for Repairs was very simple (three items worth about $300 in parts and handyman labor), but the seller denied it. No big deal; I can do the repairs on my own. However this denial revealed some information to me:

My agent questioned the listing agent about the Request for Repairs. The listing agent said that since signing the contract with me they have received an all-cash offers over my offer (hinting at $10K higher) and even have financed offers above asking price. The listing agent said it was fine if I walked away (over not having any repairs done); they would release escrow money back to me. I am not walking away.

Won't the sellers be looking for any reason to void my contract? One of the things that benefits me is that I am set to close next week. My offer is all cash-in-hand with no contingencies to sell another property first. Their property is already vacant, so they won't be needing more time to pack or move. But, I feel a little unsettled knowing that there is a financed Back-Up offer at least $14,000 higher than mine. What should I as a buyer beware of in this situation when their are much higher Back-Up Offers?
And, this is why you have an agent, local, eyes on the documents, and experienced.
To nail down things, rather than to turn you loose on an internet forum.

If you were here, my client, I would be going over the documents, again, with a fine-tooth comb to see if we missed anything, initial, date, checkbox, etc, to confirm in my mind that the contract was solid.

I had a buyer client under contract who was offered a buy out due to a higher offer last year. He said "No Thanks," and I was all over the documents looking for anything I may have missed that could have exposed him to a technical termination. Nada. We closed. He had a GREAT appraisal on his purchase.
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Old 09-11-2013, 01:26 PM
 
4,379 posts, read 2,256,666 times
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If he accepted your offer and you have a signed acceptance remove your contingencies asap and let the sale go forward. He can't back out if you agree to remove contingencies. The seller is just tyring to use the contingencies you had and say no to agreeing n repairs hoping you will back out and he can go to the higher offers.
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Old 09-11-2013, 01:29 PM
Status: "I am not Groot." (set 6 days ago)
 
Location: Cary, NC
19,237 posts, read 29,636,612 times
Reputation: 16029
Quote:
Originally Posted by Electrician4you View Post
If he accepted your offer and you have a signed acceptance remove your contingencies asap and let the sale go forward. He can't back out if you agree to remove contingencies. The seller is just tyring to use the contingencies you had and say no to agreeing n repairs hoping you will back out and he can go to the higher offers.

Any contract includes contingencies and conditions to which the parties agree.
If I was the buyer, there is pretty much no way I would agree to remove a condition of insurable and marketable title, for one.
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Old 09-11-2013, 01:58 PM
 
Location: Austin
4,260 posts, read 7,709,970 times
Reputation: 3261
The back up offer/contract means nothing to you. Move on with your closing and be done with it. It's not like the seller can ask you for more money. He denied your repair requests and that's all he can do with the hopes you'll back out. You didn't, so what do you care about the other buyer?
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Old 09-11-2013, 02:10 PM
 
Location: Florida -
4,636 posts, read 3,054,299 times
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The reason a seller might entertain or even solicit back-up offers is most often to protect himself in the event the initial sale does not go through (most common reason is the Buyer doesn't qualify for a loan). Having a legitimate, significantly higher back-up offer does somewhat limit the initial buyer's ability to negotiate further repairs based on items detected during the inspection.

Since you are prepared to close next week, about the only thing you can do is confirm that the Title Company is ready to go and has all necessary documentation. Otherwise, as long as you keep your end of the purchase agreement, back-up offer/s (even those formally submitted in writing?) should have no bearing on your ability to complete the purchase on-time, at the agreed price.
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Old 09-11-2013, 02:37 PM
 
Location: Needham, MA
3,430 posts, read 2,848,289 times
Reputation: 2299
Quote:
Originally Posted by Electrician4you View Post
If he accepted your offer and you have a signed acceptance remove your contingencies asap and let the sale go forward. He can't back out if you agree to remove contingencies. The seller is just tyring to use the contingencies you had and say no to agreeing n repairs hoping you will back out and he can go to the higher offers.
Definitely do not remove any contingencies from your contract. The contingencies are there to protect you in case you want to back out. They do not give the seller the option to cancel the contract.

Quote:
Originally Posted by FalconheadWest View Post
The back up offer/contract means nothing to you. Move on with your closing and be done with it. It's not like the seller can ask you for more money. He denied your repair requests and that's all he can do with the hopes you'll back out. You didn't, so what do you care about the other buyer?
I agree. Generally speaking (I have no knowledge of your contract or your state's real estate laws) . . . so long as you meet all the deadlines and stipulations of the contract, you are in the driver's seat in this transaction. If you have contingencies left in your contract then you and you alone can cancel the contract. Otherwise, the seller has little choice but to sell to you.
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Old 09-11-2013, 04:02 PM
 
1,266 posts, read 985,851 times
Reputation: 1776
Quote:
Originally Posted by FalconheadWest View Post
The back up offer/contract means nothing to you. Move on with your closing and be done with it. It's not like the seller can ask you for more money. He denied your repair requests and that's all he can do with the hopes you'll back out. You didn't, so what do you care about the other buyer?
Plus they could be bluffing - you don't really know what other offers they might have.
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Old 09-11-2013, 04:27 PM
 
Location: Pittsburgh
11,082 posts, read 7,187,007 times
Reputation: 3457
Slow down here. I just happened to run across this post by luck. I will tell you this, you requesting that things be fixed opens the door for the seller. If they say NO to those repairs the ball goes back in your court, so you have no agreement and during that time, they might be able to accept another offer. Yep, you created this by asking them to do work. That is a risk when you have conditions like that.
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Old 09-11-2013, 04:46 PM
 
13,504 posts, read 24,628,462 times
Reputation: 7789
As long as each side abides by the agreed terms and an act of God doesn't come into play why would you care how many backup offers come in?

In my case... I was the back up at 100k over the accepted offer and all cash with a single contingency... I was to pay for and approve the property survey.

Still didn't get the property even when the buyer in first position had trouble getting his loan contingency removed... agent sent a notice and the buyer was able to cure the next day...

What my offer did was prevent the buyer from making additional demands...
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