What do you think of a back-up offer in this situation?

sungreenMarch 3, 2012

We saw a house last week. Later that day, our agent emailed us to tell us someone else made an offer that same day which was accepted, so the house was off the market. We really regretted not getting in there in time to make an offer and asked our agent about making a back-up offer just in case, realizing it probably won't come through. He said he would "keep an eye" on its status and let us know if it fell through.

The property's status is show for backups, so a few days later I emailed the listing agent, told him who we were working with as our buyer's agent, and asked if the sellers were accepting backup offers. He told us yes, to talk to our agent if we want to make one. We called our agent and he refuses to make the offer right now. He told us he spoke to the listing agent and they know we want the house, that if something falls through they will call us first, but doesn't want to write an offer because he believes it will go through. Both agents are with the same broker and know each other pretty well.

Should this be okay with us? I understand they have all talked it out but I'm worried it might fall through and there be some lag time where another party makes an offer and we lose our shot. I'm not sure if I'm being silly or if our agent is not doing his job. Any feedback on this is appreciated.

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kirkhall

Wow!
I'd find an agent to write you an offer to submit (not in the same firm).

    Bookmark   March 3, 2012 at 8:52PM
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ncrealestateguy

Report this agent to his Broker in Charge. He is violating many rules and regs. He is obligated to write up and submit an offer, if that is what you desire. Fire him, no matter what documents you have signed with him, and get a new buyers agent to get the offer submitted.

    Bookmark   March 3, 2012 at 8:59PM
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azmom

" I understand they have all talked it out", talked out what? If it is not in writing and signed by you, it means nothing.

" if something falls through they will call us first", really? so they would call you first instead of calling the other buyers who put in back up offers?

Your agent is lazy and dense. Find a new one. Nevertheless, You have to understand no one could protect your own interest better than yourself, using critical thinking when engaging in any business transaction.

    Bookmark   March 3, 2012 at 10:50PM
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dreamgarden

"We called our agent and he refuses to make the offer right now. Both agents are with the same broker"

I second what ncrealestateguy says. I'd also call the realtor board in your state to make sure the broker in charge follows through. You don't want to end up paying a commission to two agents. Remember to put everything in writing.

Links that might be useful:

www.trulia.com/voices/Home_Buying/Did_real_estate_agent_break_any_rule_or_law_by_lyi-295485

State Real Estate Associations
realestate.about.com/library/boards/statesonly/blallstates.htm

    Bookmark   March 4, 2012 at 9:12AM
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ncrealestateguy

There is no way the buyer would be paying any commission. And definately not two. The commission will be coming from the seller.
Reporting the agent to the local realtor commission is probably a good idea. I despise having to work with lazy agents.

    Bookmark   March 4, 2012 at 6:39PM
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linda117117

If they were in different offices and different companies, I would agree with the posters here, but in this case, I actually dont agree with anyone here that says to fire the agent. They are in the same office, they are co workers and friends. THe listing agent knows his "co worker" has an interested party. Ideally, everyone wants the house to be an in house sale. He probably doesnt think its necessary to write it all up because he knows if the deal falls thru,your offer is next in line to be negotiated. Look at it this way, negotiating an offer right now when the sellers already have an offer on the table only means you have to be as good or better than their offer.(why would they accept anything less as a backup) If their deal falls thru, you actually have more negotiating power because they have "NO" offer on the table. Writing the offer is just a formality, I wouldnt worry about it. Do you really think reporting him to a local real estate commission is going to work in your favor? Trust me, if you do that, and the deal falls thru, the listing agent wont want to be in a transaction with you either.

    Bookmark   March 6, 2012 at 10:55AM
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ncrealestateguy

But Linda, it does not matter what the agent wants or does not want. He is working for the buyers. And if they asked him to draft up a back up offer, then he is obligated to do so.

    Bookmark   March 6, 2012 at 2:54PM
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azmom

I thought any offers submitted after an offer is accepted, are called "back up" offers.

A seller cannot back out an accepted offer without a legit reason, to accept a better back up offer. This is not a scenario when the seller is trying to decide which offer to accept, so why a backup offer has to be at least equal or better than the accepted offer?

After the accepted offer falls through, more reason that a back up offer does not need to be at least equal or better than the first falled through offer. At this point, before the seller accepts a new offer, back up offers compete with other back up offers, or any potential new offers.

"Do you really think reporting him to a local real estate commission is going to work in your favor? Trust me, if you do that, and the deal falls thru, the listing agent wont want to be in a transaction with you either." - I hope it is not true. If this is true, I love to hear what the seller would say after he/she finds out.

    Bookmark   March 6, 2012 at 8:54PM
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ncrealestateguy

Here in NC, we submit back up contracts, not back up offers. And as everyone knows, there is no such thing as a valid, enforcable RE contract that is not written.

    Bookmark   March 7, 2012 at 6:59AM
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brickeyee

"After the accepted offer falls through, more reason that a back up offer does not need to be at least equal or better than the first falled through offer. "

Say what?

Depending on why the initial offer fall apart a lower backup offer may be more than acceptable.

And "better" is often in the eyes of the seller.

Faster closing, fewer contingencies, etc. can all make an offer "better" if they meet the buyers desires.

    Bookmark   March 7, 2012 at 10:35AM
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linda117117

But Linda, it does not matter what the agent wants or does not want. He is working for the buyers. And if they asked him to draft up a back up offer, then he is obligated to do so.

NCRealestate guy, Im sure if the buyer insisted, the buyer would write up the offer. The whole conversation to me sounded like they asked about it, he said, dont worry, they know you want the house, if it falls thru, we know your offer is there, making the "paperwork" a formality.

I could be more relaxed about it because in my area, we write offers that are not binding, its basically a piece of paper with the details of the offer. There is no contract until about 2 weeks after the offer. In other words, the offer isnt worth the paper its written on. The agent just knowing another agent in her office has an interested party is no different than having a piece of paper that says he has an interested party.

    Bookmark   March 7, 2012 at 10:22PM
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