Ask Phyllis: a blog series of frequently asked real estate questions.
Why Didn’t the Seller’s Agent Spark a Bidding War?
Dear Phyllis,
We looked at a townhome that had been on the market for two months. The day we looked at it, our agent and the seller’s agent communicated via text while we were there. We had a couple of questions, and they were answered. This was at three o’clock. We discussed writing an offer when we talked to our agent at 6:30 pm. While on the phone, I got a Zillow alert that the unit was in escrow.
Our agent called the listing agent and asked if the offer was full price, and the seller’s agent shared that it was a two-week escrow to a cash buyer. But it was not at full price. I can’t understand why the seller’s agent didn’t reach out to our agent letting her know that an offer was in hand. Why didn’t the seller’s agent spark a bidding war? I am hoping you can offer some explanation.
Missed Out
Dear Missed Out,
I share your confusion about this situation. I hope the seller’s agent informed their client about your interest and asked them if they should contact your Realtor.
Let’s consider timing as a possible factor. If you had submitted an offer, it would have triggered a multiple-offer scenario. This would have extended negotiations over several days. The seller might have prioritized a quick sale due to urgent financial pressures.
The offer may have had a quick expiration date. I recently received a $1,450,000 offer on a home listed at $1,285,000. The offer expired that day and arrived after just one day on the market. My client and I weighed the benefits of accepting this strong offer versus waiting for open houses. We decided to wait, which paid off for my client. We received multiple offers, and the final selling price was $1,500,000 from the initial buyer.
So much psychology in todays real estate buying and selling