Offer to Purchase

[BRN2005]

What is the name of your state? Colorado
I have been looking at a property (vacant land) for a couple of months. When I originally began looking, the realtor had had the property listed for nearly a year and did not know where the property lines were or if the property was actually a buildable lot. I did all of the leg-work with the county office to determine the legalities of building on the property. The realtor continued telling me there was no hurry in my making an offer, as there had been no offers in about 9 months, so I was not worrried. All of a sudden, there was another offer made (after the information I had gathered was shared). The offer was a full priced offer. I then put in an offer for $10,000 over asking with a contingency of the sale of a property that I own. The sellers were presented both offers and took the first offer, accepting mine as a back-up. After about a week and a half, I got a call from the realtor that the other offer was not going to fly because the appraisal had not come in high enough for them to qualify for their loan (I was not going to get a loan). I then assumed that my offer was to be accepted. After not hearing for a couple of days, I called to find out the status of my offer. I was then told that the first buyers had withdrawn their full priced offer and made an offer approximately $10,000 less that their original offer and that the deal was gong through at that price. My question is, shouldn't my offer have been in first position ahead of a second offer by the original buyers? I may be all wet, but it seems to me that I was skipped over incorrectly? What is correct?

 

[nextwife]

A listing agent has no way of knowing if a co-broke may be planning to write an offer.
Given a choice between a "clean offer" with no continguencies, and a contingent offer, that may or may not actually go, I'd take the clean offer every time, even if it may mean less money. That was the seller's choice. If a seller is presented two offers, they can choose one and accept it if the terms are agreeable to them. They are not obligated to give the "first" offer another shot if they have an acceptable offer in front of them that they prefer.

 

[justalayman]

A listing agent has no way of knowing if a co-broke may be planning to write an offer.
Given a choice between a "clean offer" with no continguencies, and a contingent offer, that may or may not actually go, I'd take the clean offer every time, even if it may mean less money. That was the seller's choice. If a seller is presented two offers, they can choose one and accept it if the terms are agreeable to them. They are not obligated to give the "first" offer another shot if they have an acceptable offer in front of them that they prefer.

I see the OP's question as different from what you are explaining.

I believe the OP feels that since his offer was actually accepted (which it was) and placed as a back up offer contingent upon the 1st offer failing to be closed, that when the original offer did fail to be completed, that his offer should have then been the primary offer and been completed.

I am not sure myself but based upon the wording of the post, the first offer was actually withdrawn making the OP's the primary accepted offer. If the 1st buyers deal was simply renegotiated, I don;t know if this would have the same effect as a withdrawn offer. I tend to think it may have though.

The exact wording of each of the offers would be very pertinent to this situation. If I was the OP, I would at least consult with a local RE attorney who could review each of the contracts to be sure of the correctness of the situation. Some contracts I had been involved in actually allowed the seller to accept another offer becasue of your contingeny although they generally contained a time limit for the buyer to release the contingency.

 

[efflandt]

What does the OP mean by "accept". Did the seller provide anything in writing explaining under what conditions it would be accepted as an alternate?

Maybe you should not have shared the information that made the property easier to sell.

 

[BRN2005]

Nextwife,
I do understand that originally the seller had the options as to which offer to accept. That is not my question. I received a call and was told that the original offer (from the first buyer) had been withdrawn because the appraisal did not satisfy their lender. At that time, I was of the understading that my offer was in the #1 position. What I do not understand is whether or not the first buyer had the option to make another offer without my offer being placed ahead of their 2nd offer.

 

[justalayman]

Nextwife,
I do understand that originally the seller had the options as to which offer to accept. That is not my question. I received a call and was told that the original offer (from the first buyer) had been withdrawn because the appraisal did not satisfy their lender. At that time, I was of the understading that my offer was in the #1 position. What I do not understand is whether or not the first buyer had the option to make another offer without my offer being placed ahead of their 2nd offer.

Did the seller sign as acceptance your offer?

If he did not, then the seller is under no obligation to sell to you. Once the other sale failed, he could look at a thousand offers and take which ever one flipped his fancy.

Now if your offer is a signed as acceptance deal, you may have a gripe.

Which is it?? signed or not signed?

You have no right to have you OFFER placed anywhere. There is no obligation for the seller to accept your offer or any body elses offer. So if it was merely just an offer, you have no rights or claims.

 

[BRN2005]

I was "told" that the seller had "accepted" my offer as a back-up. I do not have anything in writing, but then again I never asked. I will see if I can get anything in writing whoeing that my offer was "accepted". If there is any reason the realto thinks he/she may be in trouble or in the wrong, I doubt that I will be able to get a copy of anything there may have been in writing, but I will try playing dumb and see what I can get. Assuming I can get something in writing stating that they had indeed accepted my offer, what, if anything, are my options?

 

[Gadfly]

[
I'm not sure of the sequence of events here, so let me ask some questions.

1. When your agent said the original accepted offer was not going to fly, did he say that the negotiations with the buyer were over or did you just assume that they were? I ask this because I can see that the orignial prospective buyer and the seller could have been working on a new number they could agree on.

2. Did the seller ever accept your offer, or just say that it was there as a back up?

And finally, you said:

At that time, I was of the understading that my offer was in the #1 position.

3. What gave you this understanding? Being in the number 1 position means that you currently have the best offer. That does NOT mean that there is any obligation to accept your offer.

PS - Find another realtor.

 

[BRN2005]

As I said, what I actually got with regards to my offer being accepted as a back-up was only verbal via the realtor. I will have to wait until after the weekend to see if there was anything in writing and if I can actually get a copy (assuming there was).
What I was "told" by the realtor was that "the deal is off" with regards to the original buyer. That is why I assumed that my deal was going to be a go.
Hypothetically: If there is indeed a written acceptance of my offer as a secondary contract, and the original buyer did in fact withdraw his offer, where then would that put me and with what recourse?
I feel as though there were some shady dealings involved (I think there was some juggling for the sake of commissions), but unfortunately, I don't believe there is anything I can do but be disappointed (and "Yes" get a different realtor).

 

[justalayman]

I strongly suspect you aren't going to win on this.

Unless your offer was a signed as acceptance offer and the first offer was actually withdrawn and not merely amended, you don;t have any claim.

If you offer was signed and the first offer was actually cancelled, you probably have a fighting chance.

I doubt the first offer was actually withdrawn but merely amended. If this is the case, you have no case.