I just took a property off the market after receiving an offer , the offer is a low ball but what the heck , I felt at least it will get the ball rolling to submit package to bank since they did not want anything without an offer.
One week later I get a call from another agent that has a buyer that will pay 25K over what we get the home for and wants to get it in writting.
Can this be done ? , do I have an obligation to contact bank and let them know their is another interested party ?
neither offer would be enough to make the bank whole , so the seller could care less , the seller has filed BK and included the note , the BK has been discharged .
I would want to relist the home the same day of closing and re sell it to the new buyer
I feel the bank has had ample to time to do its due deligence and determine the price of this home and if they accept an offer it does not matter if someone comes the next day or the next year and offer more
What do you think ?
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- Once an offer is under deposit .. it is under deposit. (even if a higher offer comes along) .. That's what a contract is for.
- 99.9% of short sale approvals will not allow the resale of the property in 30-60-90 days.
- I would at no time ever say 'this is our highest offer', or the like to push approval.
- If the other buyers want to pay more, they need to wait till after closing and the re-sale flip terms expire.
- Another thing you can do is to have the higher priced buyer pay the original buyers a 'fee' to void the contract, but you will have to start the short sale over.
this is real estate 101. If you have an executed contract and it is still in force, you MAY NOT substitute another contract no matter what the offer is. I'm amazed at what I read here sometimes.
Here is an interesting article you may all want to read!
http://www.loansafe.org/connecticut-real-estate-agent-sentenced-to-...
What about the article? The way the fraud was performed is in no way the same thing as this topic's original question.
The fraud was performed because the agents had a higher offer in their hands before the agents submitted their own lower offer. The agents didn't tell anyone what was going on and therefore you have fraud.
The original question stated that a buyer had a contract and then turned around and planned on reselling... I think...
As long as the lower offer was EXECUTED first and the disclosure of resale was issued, then, there is no problem reselling to the higher offer.
This is an old case. Anna McEllany got 8 months in prison and 3 years probabation. I couldn't find the sentencing of the second agent.
Beverly,
Can you start a new post with this? This is something that is important enough for a new post.
Jeff
Very interesting. I sure would like to see more information on this. One big issue that I see is lack of disclosure, especially of they did not disclose their relationship. Did the higher offer get accepted first and they then drafted a lower offer to submit to the bank in order to pocket the difference.
Did Regions Bank have a duty to verify that the offer they approved was fair market value? The 2 offers were quite far apart and if the property was actually worth the higher offer, how did Regions Bank not know it if they did their due diligence.
I see both parties at fault here with the limited information that we see. Agents did not disclose and may have conspired to send in a lower offer, knowing that they may be able to profit from it. Regions Bank didn't do their homework by finding out what the property is actually worth.
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