bid/offer confirmation? (lease, how much, house)

[JohnStein]

About 2 months ago, a friend of mine bidded a house $20k over asking (hot property). Still, that didnt get him the house and all he knows is there are over 10 offers. Now that he property has closed, he found out that closing price is almost $40k less than his bid. I know there could be negotiations after the offer has been accepted for items turned out from inspection. But the logical thing from the seller's perspective is not to back down and pass it back to the buyer to break the contract.

The question is, how can my friend tell whether his bid was actually submitted to the seller?

On the other hand, if I were the sellers, how do I know my agent presented me with all the offers and not taken some cash from a low-offered buyer as commission? For each $1000 on commission, the closing price has to be $33,333 more assuming 3% commission.

[HoustonBornNRaised]

It's not always about what the offer price is.

Did your friend have contingencies? Was he relying on financing? Was the offer submitted complete, with a pre-approval letter? Did the buyers agent call to make sure the offer was received by the listing agent?

I can't think of a way that your friend can find out whether or not the other offer was submitted, short of accusing the Realtor and bringing a complaint against him/her against TREC.

[JohnStein]

The offer is 25% down, rest in financing, included the pre-approval letter and even a short letter. buyer's agent CC'ed him in the email to the seller's agent. Then a day or two went by and got a call from his agent telling them the seller picked someone else and no explanation.

[fordlover]

If the other buyer was paying cash, wanted to close quickly, threw in a speed boat in the deal, or vacation package to paradise...etc. You never know what the other deal was, impossible to know.

[Maybe So]

Maybe buyer did not have an agent- sellers save $, brought more cash to table, flexible close date or lease back option, was a friend of the sellers kid....anything is possible....

Sorry your friend missed out on the house though. I would hope they could trust their agent. That would tough to work with someone that was not on your side or looking out for your interests. I always went with agents referred by friends and/or family and who had a vested interest in the area I was looking/selling.

[Schumacher713]

I have heard people taking less money simply because they liked the people better than the others. Though this kind of thing is rare.

[HoustonBornNRaised]

It could be as simple as they decided to work with the first offer received. Who knows, really.

I got almost ten offers within the first day of a house being on the market not too long ago. I sent an email to every agent telling them we were in a multi-offer situation, and to come back with their highest and best by a certain time.

It was the most time-consuming listing I've ever taken on, but I was constantly in contact with everyone, and most of the buyers agents were in contact with me throughout. I sent out another email when my sellers had made their decision, and I did have a few agents call me to ask me why their offer didn't make the cut. I had a reason for every one of them.

The person who got this particular house was neck and neck with a few others, but she took the time to write a letter to be submitted with her offer, and it did help my sellers make their decision. When I submit an offer as a buyers agent, I submit a letter too, in a tight market, telling them about my buyers. You wouldn't believe how much something so simple, can make a big difference, in an emotional transaction.