Real Estate Law -- Help Please! (contingency, 3%, agent, commissions)

[SSchirm]

We are in a very interesting situation and could use a little help from some of the professionals that read this board (realtors, attorney's etc).

We fell in love with a house that has been on the market since last fall. Apparently the people who own the house have been relocated. They have all of their living expenses covered as a result of the relocation and have their house up for sale here in NJ. Althought they have received a number of offers on the house, they have not agreed to a price and will not sell. I'm getting the impression they are not happy where they are, and are considering coming back to their home in NJ, and are hesitant to let it go.

We have just made an offer 3% lower than asking price, and they have refused to counter. We are considering meeting their asking price, just to see what they will do.

Here is my question -- If we meet their asking price, do they HAVE to sell to us? We've been told that this situation would force their hand and they would either have to sell or take the house off the market completely. I can't seem to find out if this is correct. Going to their full asking price would really stretch our budget, but we really like the house and it still seems like a good price for the area.

Thoughts? suggestions?

[elledee75]

From what I understand, they do not have to accept a full price offer however, should they refuse they will then have to pay the listing agent full comission.

[Goodpasture]

I am not an attorney, and a Realtor only in passing. But in Oklahoma you CAN sue for specific performance. If you make a "full contract offer" what you are doing is accepting THEIR offer to sell. That makes it binding. The ONLY way they can NOT follow through is to withdraw the listing.

[tamitrail]

I don't think that is the case everyplace. I think they can refuse any offer they want to.

Who did you make the offer through? Don't you have your own buyer's agent to ask?

[tamitrail]

PS: I would also like to state that if going to full price is "really stretching your budget," you SHOULD NOT make the offer. Forget about trying to get one up on this seller. Think about your future.

[SSchirm]

Thanks for your thoughts. We did get an answer from our agent. Apparently it's a bit more confusing and requires our attorney getting involved. We will just have to see what happens!

Thanks again!

[DMenscha]

In CA, the seller is not obligated to sell, but does incur the liability for the full amount of the real estate commission. That usually is a pretty potent motivation for most people, but sometimes holding on to the home is worth the money involved.

Good luck.

[Mike Peterson]

Originally Posted by Goodpasture

I am not an attorney, and a Realtor only in passing. But in Oklahoma you CAN sue for specific performance. If you make a "full contract offer" what you are doing is accepting THEIR offer to sell. That makes it binding. The ONLY way they can NOT follow through is to withdraw the listing.

In no state would you be able to force someone to sell just by meeting their asking price. Especially not if the person making the offer has a financing contingency. And they would not have to withdraw the listing.

If they have a listing contract then the list agent may be able to come after them for his commission.

[Goodpasture]

Originally Posted by Mike Peterson

In no state would you be able to force someone to sell just by meeting their asking price. Especially not if the person making the offer has a financing contingency. And they would not have to withdraw the listing.

If you have ANY kind of contingency, it becomes a counter offer. If they have a full offer, they have a choice....they can sell to the offeree or they can remove the property from the market. In an inflating market, it is acceptable to turn down a full offer, withdraw the property from the market at the old price and terms, and re-list immediately with new prices or terms, or they can accept bids with minimums stated or not stated. Either way, they owe the commissions as the Realtor performed his job....found a ready and willing buyer.

[Mike Peterson]

Originally Posted by Goodpasture

If you have ANY kind of contingency, it becomes a counter offer. If they have a full offer, they have a choice....they can sell to the offeree or they can remove the property from the market. In an inflating market, it is acceptable to turn down a full offer, withdraw the property from the market at the old price and terms, and re-list immediately with new prices or terms, or they can accept bids with minimums stated or not stated. Either way, they owe the commissions as the Realtor performed his job....found a ready and willing buyer.

If a buyer offers full price with a financing contingency, why would it become a counter offer?

It would just be their offer and would not be binding on the seller in any way, shape or form.

The commission to the listing agent is another story. The seller would owe nothing to the buyers agent.