Can we put in a higher offer on a short sale if one was already accepted?

[Mapper]

What is the name of your state (only U.S. law)? WA

My husband and I found a house that we LOVED and put in an offer. The house was listed at $179,000 and we offered $170,000. The house had been on the market for 2 months so we figured that there were no other offers. Well come to find out that the same day we presented our offer, 3 others did as well! One was lower than ours, but cash, and the other two were for full price. One of the full price offers got it. We were absolutely heartbroken.

The house was a short sale and we asked our agent if we could put in a higher bid even though the previous one was accepted. He said no. Well reading over our paperwork, there's a 22SS clause in WA that says the seller may continue to accept bids after an offer is accepted. So why can't we put in a bid for say $10,000 over? Regardless either way, why can't we put in a back up offer so that if it does fall through we can be next in line?

 

[FlyingRon]

You can always offer.

The question is if he can accept your offer without breaching a purchase contract he is already subject to. However, in the case of short sales, the acceptances are always conditional on bank approval, so it's quite possible they could consider your offer.

 

[justalayman]

You can put in an offer and it is quite likely it could be accepted as a contingent offer. The seller and/or the bank are not obligated to even review a back up offer let alone address it in any manner.



I suspect you are wanting to know if you could put in a higher offer and it knock the already accepted offer out of their place. The answer is almost 100% assured; no. Unless there is something goofy in the current contract, it is there until consummated or it fails for some reason.

 

[Mapper]

You can put in an offer and it is quite likely it could be accepted as a contingent offer. The seller and/or the bank are not obligated to even review a back up offer let alone address it in any manner.



I suspect you are wanting to know if you could put in a higher offer and it knock the already accepted offer out of their place. The answer is almost 100% assured; no. Unless there is something goofy in the current contract, it is there until consummated or it fails for some reason.

But it states in the paperwork that the seller can continue to accept other offers even after mutual agreement. And I saw another website where a WA real estate agent said they reached a mutual agreement but somebody else came in with an offer of $15,000 more and they deicided to go with that one instead.

 

[justalayman]

But it states in the paperwork that the seller can continue to accept other offers even after mutual agreement. And I saw another website where a WA real estate agent said they reached a mutual agreement but somebody else came in with an offer of $15,000 more and they deicided to go with that one instead.

the can accept offers but they must be contingent upon the existing contract failing.

I cannot believe your anecdotal reporting of a contract being dropped due to a different offer. Contract law does not allow for that. What would be the sense of having a contract if somebody could come along and say: I'll pay $1 more. A buyer would never be able to get a bank to commit to a loan because there is no certainty the sale would ever be completed. Just not going to happen.



If the contract has been accepted by all parties, it is not going to be terminated due to another offer. I suspect the one in your example either failed for some reason or the contract had not been accepted by all parties yet.

 

[Mapper]

the can accept offers but they must be contingent upon the existing contract failing.

I cannot believe your anecdotal reporting of a contract being dropped due to a different offer. Contract law does not allow for that. What would be the sense of having a contract if somebody could come along and say: I'll pay $1 more. A buyer would never be able to get a bank to commit to a loan because there is no certainty the sale would ever be completed. Just not going to happen.



If the contract has been accepted by all parties, it is not going to be terminated due to another offer. I suspect the one in your example either failed for some reason or the contract had not been accepted by all parties yet.

What seems to have happened is that an offer was in and the seller accepted it, but it sounds as if they were still waiting for weeks to see if the bank accepted it and in that time the seller dropped the lower offer and went with the larger offer. Can that be done?

The house we want is listed as "lender approved" at $179,000 so if that's what the offer was do they have to wait and see if it is accepted even though the bank has already approved that amount? In the meantime they are doing an inspection. However, they have 10 days to do an inspection. If the inspection doesn't get done in that time can the house go back up on the market?

 

[justalayman]

Mapper;3165814]What seems to have happened is that an offer was in and the seller accepted it, but it sounds as if they were still waiting for weeks to see if the bank accepted it and in that time the seller dropped the lower offer and went with the larger offer. Can that be done?

maybe, maybe not. It will depend on exactly how the contract is written and if it is binding or not prior to the bank accepting the offer. Without reading the actual contracts involved and having the information of what actually happened, it is just not possible to do anything other than guess.

The house we want is listed as "lender approved" at $179,000 so if that's what the offer was do they have to wait and see if it is accepted even though the bank has already approved that amount? In the meantime they are doing an inspection. However, they have 10 days to do an inspection. If the inspection doesn't get done in that time can the house go back up on the market?

It could go back on the market tomorrow if the contract fails. It might go all the way to closing and be finalized. Anything could happen. Nobody knows what will happen. Everybody getting a buck out of the sale hopes what will happen.


If the sellers agent said they will not accept back up offers, then that is what it is. If you want the house that badly, I would surely ask if it is possible to put in a back up offer contingent on the current contract failing. The worst they are going to say is no. I would also make sure the agent has your phone number to call you should the current sale fail. An agent loves to have a back up already in his pocket if possible.

 

[Ohiogal]

Posting history on this one.

 

[Mapper]

Posting history on this one.

Okay Ohiogal, so what's the problem you have with me NOW posting a totally legit real estate question?? Do you have a problem with me asking questions over and over to figure out exactly what to do and clarifying my situation?

 

[Ohiogal]

Okay Ohiogal, so what's the problem you have with me NOW posting a totally legit real estate question?? Do you have a problem with me asking questions over and over to figure out exactly what to do and clarifying my situation?

You were whining that your landlord wanted to change your contract to suit her and yet you don't see it as hypocritical to expect others to change a contract to suit you. And yes, there is a problem with asking questions over and over to figure out exactly what to do. You need to learn to read and comprehend the answers that have been given to you several times and quit posting new threads looking for loopholes or ways to make the world revolve around you. Happy now?

 

[Mapper]

You were whining that your landlord wanted to change your contract to suit her and yet you don't see it as hypocritical to expect others to change a contract to suit you. And yes, there is a problem with asking questions over and over to figure out exactly what to do. You need to learn to read and comprehend the answers that have been given to you several times and quit posting new threads looking for loopholes or ways to make the world revolve around you. Happy now?

Yes thank you! Mea culpa, mea culpa, mea maxima culpa. I bow down to you for pointing out the error of my ways and appreciate that you find the time out of your busy day to not only read my ridiculous posts, but to respond to a peon such as myself who doesn't know any better!