Yes, I have. I had a buyer two years ago that submitted an offer and had it verbally accepted. Before the sellers signed the contract and sent it back to us, the other agent calls and informed us that another offer came in and was accepted. The seller did not ask us,nor did they want us to present another, higher offer, which my buyer would have. Some people just don't like the process of a multiple offer situation.
Did your friend submit a back up offer or a back up contract? A back up offer is not nearly as strong as a back up contract, especially in the type of sellers market that you describe, mainly because the seller can accept multiple back up offers, while a back up contract puts you in a legally binding secondary position. A back up offer does not.

At this point, it's just a back-up offer. I'll have my friend press her realtor to make sure it becomes a back-up contract.

Just did.
I made an offer on a new home and it was accepted before I'd even listed my home. Obviously, I need to sell fast.

However, unlike your friend's situation, my first potential buyer wanted to counter back and forth like a tennis match. I verbally accepted 20k less than asking and before the agent got the contract over, someone else stepped in and submitted full asking price. I don't have time to get into a bidding war and once I knew someone was willing to offer full price, the idea of countering back and forth just irritated me. The agent on the first offer attempted to berate my agent for not giving them the opportunity to "counter again." I was more than happy to explain that it was my decision and their offer should've been more aggressive from the start.

Also, depending on the seller's situation, they may have been willing to accept a "somewhat" lower offer in cash than a full offer with financing. A financed buyer can take 30-90 days to close depending on your market and with a cash deal, you can have a check in hand the same day.

Thank you for clarifying that you know your situation was different than my friend's situation. In your case, I would have done the same thing you did, jglo!

My friend did have a financing contingency, but the seller didn't know that since she accepted another offer before my friend's realtor could submit hers. Oh, well.

I flew 1200 miles to buy a home, the realtor knew I would be making an offer
As my plane landed he took another buyer to the seller with an offer.
happy ending. I bought the house across the street from said realtor.
For 1/3 less. Did not use said realtor

I gotta seriously wonder about the business acumen of realtors like that.

As my plane landed he took another buyer to the seller with an offer.

Maybe a realtor can jump in here to clarify, but I don't think that the realtor did anything wrong in this case.
If a realtor is representing 2 different people and they both want the same house, I don't think they can prevent one of them from viewing a house or putting in an offer. Or even steer them away from a house.
And the buyer's realtor also has no control of whether the seller will immediately accept the first offer or wait to see if there's another one coming.
Personally, I think it was just bad luck how it worked out for you. (Or ultimately good luck since you ended up with a better deal)

Good luck for me.
I like this house more.
Jo

** I don't think they can prevent one of them from viewing a house or putting in an offer. Or even steer them away from a house. **

Absolutely agree. But, I do think the realtor had an obligation to not abandon his other client. Once the realtor realized he had two buyers for the same house, I feel he should have arranged with another realtor to step in to represent other buyer.

Also, I want to thank you, Greg, for the considerate way you presented your alternative viewpoint. You didn't resort to inflammatory tactics or attempt to create a "straw man" situation or try to decimate me when creating your post. It's refreshing, so thank you.

This post was edited by Jewel654 on Fri, Jan 30, 15 at 20:54

The fact that the house went under contract before you saw it isn't the Realtor's fault.

For all we know, Realtor could have told seller that another potential buyer was to see the house, & seller said, "bird in hand, where do I sign this thing?".

Realtor wouldn't have told any other potential buyer about that conversation.

Had the seller been my client, I'd have told seller about the other buyer, & unless the offer were full price cash, I might have recommended waiting until the evening to present both offers.

but if seller said, "forget it, I'm signing this offer right now", Realtor cannot refuse to let him sign.

& the fact that that house sold for more than the one you bought sounds like the Realtor was doing his/her job for the seller.

Realtor may have known the house across the street was less expensive, & may have had an inkling that you were a competitive shopper & would either want the cheaper one or want his seller to reduce the price to match the cheaper one.

Rumor was buyer knew I was flying in.

I'm happy with my home. Just wanted to say you can't trust everyone.

Jo