Beat out by another offer and I`m quite confused.

[Laurie16]

Hello members, I do hope someone can clear up my confusion on a situation that happened two days ago.

We had decided to put an offer in on a house in s/w Ontario that the bank had taken over. The day before we were scheduled to meet our agent to draw up the offer, our agent called to say that another offer was going to be coming in the next morning from another agency. Note that neither our agent nor the competing agency is the listing agent. My partner met with our agent late that evening to draw up the offer and get it in.

Today (about 18 hours after our offer went in) our agent told my partner that we would now have to wait until Sunday evening to find out if the competing offer was accepted. My partner wasn`t clear as to why and I`ve not been able to speak with our agent.

We thought our offer made it in first, but I`m guessing it didn`t. I don`t know what the legalities are when multiple offers are made, so I`m hoping someone can explain it to me. Can only one offer be looked at at one time and is the first one received or the higest offer or the one with less conditions? Has this something to do with the "48 hour clause", which I`m barely familiar with?

Any clarification would be greatly appreciated.

Thanks

 

[GaryMcGowan]

Banks, Owners,
Can receive many offers and accept one. It really doesn`t matter who`s was in first or who is the highest.
If it is a bank that is the current owner or has control of the property, they are looking for the offer that has the least conditions on it if any.

 

[Dan_Eisenhauer]

Gary nailed this one.

A seller is not compelled to accept any offer simply because an offer was made. Nor do they have to counter an offer. The seller is free to accept, OR COUNTER, any offer presented, on any terms the seller sees fit.

I think it is normal, for multiple offers to be presnted in the order they are received. However, the seller can review each offer before deciding which one to work with. For whatever reason, this seller chose to deal with the competing offer, and you will probably never learn why.

NEXT!

 

[tahani]

Very surprised that your agent did not explain to you “the buyer” the process of competing offers.



You should have been well aware of the process so you can make an informed decision.



Next time, ask (agent) as it’s his/her duty to inform you. Great lesson.

 

[Thomas Beyer]

QUOTE (Laurie16 @ Mar 5 2010, 08:22 PM) ..
Any clarification would be greatly appreciated.
any owner/seller would be wise to get multiple offers in parallel .. then pick the one that suits him best .. factoring in:

a) price
b) # of conditions
c) severity of conditions
d) timeslines for conditions
e) timeslines for closing
f) size of deposit

 

[markl]

Typically Bank Sales Power of Attorney sales need a minimum of 72 hour irrevocable as it is the Law firm handling the offers and they have to co-ordinate with the bank. Sometimes they respect this time line and other times well they do not. Not much to be done but wait

You really have to play by their rules in these cases. I have spoken with some of the lawyers who write their clauses as typically you have to use their schedules as well and typically any change disqualifies you from the process.