Counter Offers not Required
Dear Phyllis,
I have been looking at Glendale homes for nine months. During that time, we submitted several offers, but the sellers rejected them for various reasons. The most recent offer my agent submitted was on a home which had been on the market for three weeks. When asked, the seller’s agent said there were no other offers. So, I offered a tad less than the asking price. After two days, my agent contacted the seller’s agent, who told him that the seller accepted another offer. Isn’t it some kind of violation that the seller’s agent didn’t contact us to let us know another offer came in? At the very least, we should have been given a chance to make a higher offer. Gipped
Dear Gipped,
Multiple offers often create confusion about how sellers should handle them. Ultimately, the seller—not the real estate agent—decides how to handle the offers. Likely the seller’s agent was accurate when telling your Realtor that there were no offers (at that moment in time).
It seems logical that the seller and their agent would have countered both offers and asked each buyer to return with their “highest and best” price. However, they weren’t required to. I don’t know why they didn’t give you the opportunity to improve your offer. Perhaps the other offer included terms the seller considered far superior.
For example, suppose the seller wanted a quick closing. The other buyer may have offered a higher price and could close sooner because they were paying cash. Or perhaps that buyer offered the seller an extended stay in the home after escrow closed. In that case, the seller may not have wanted to risk losing what they considered the stronger offer.
In the future, have your Realtor stay in close contact with the seller’s agent. Situations can change quickly. Also, I suggest your agent simply ask the seller’s agent why they didn’t counter your offer. The answer could provide valuable information for the next offer you write.
Best of luck with your home search!
