Sometimes you Lose a House You Thought You Had

By
Real Estate Broker Owner with J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY

It happens. My buyers had an accepted offer less than 24 hours old and were preparing to call their home inspector when the listing agent called me. A competing offer raised their bid to a number higher than ours, and the seller was giving us the courtesy of a chance to match or beat before they considered switching horses. 

We do it a little different here in New York; attorneys prepare contracts, and until they are signed, anything can happen. Most times you get one buyer. No issues there. But even in this market, nicer homes can get competing offers. Often, if all offers come in at the same time one decision is made and it is clean going forward. However, sometimes you get a late entry, and that is when it can get dicey. Many sellers never switch buyers because they gave their word. Some let the math guide them and do switch. 

Occasionally, I have seen the seller bump Buyer A in favor of Buyer B, and when Buyer B falls through Buyer A has moved on. They've gone from 2 buyers to zero. That isn't a nice feeling. 

J Philip Real Estate

In our case, we are buyer A and all indications are that Buyer B will get the house. My people elected to stick with their bid, because they felt that the seller should honor their word, but spoken words don't hold up prior to contracts being signed. There is nothing I could have done short of beating them up to raise their bid. I couldn't speak with the seller, and nothing I said to the listing agent could change the seller's mind. In their view, we had our chance to raise our number and didn't. 

Still, they are now very discouraged. It is part of this business; sometimes you lose a house you really wanted. They have laid low the past week, and while I certainly hope they don't blame me, emotions run high and anything can happen going forward. 

There really is a "wild west" component to real estate that is rough on people- buyers, sellers, and yes, brokers. 

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Topic:
Home Buying
Groups:
Club Chaos
Dedicated Bloggers
Diary of a Realtor
The Vent
War Stories
Tags:
lost deals
buyer agency

Comments 39 New Comment

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Rainmaker
750,229
Marte Cliff
your real estate writer
Marte Cliff Copywriting

What is the point of having an accepted offer if the seller can change his mind without recourse. That's one goofy system!

April 13, 2010 01:58 AM
Rainmaker
154,451
Tina Gleisner
Home Tips for Women
Home Tips for Women

Wow, I would have thought anything signed was enough

April 13, 2010 02:40 AM
Rainer
41,053
Dominick Gaccino
Dominick gaccino

things that arent broken they "fix" ex new 2010 GFE......

 

others that do need fixing are just left alone

 

it would be nice that when govt is asking "what changes are needed in the RE and Mortgage industy?" they actually ask the professionals

April 13, 2010 07:46 AM
Rainmaker
792,599
Lyn Sims
Schaumburg Homes
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

Sometimes things like this come back & bite the sellers in their big fat greedy rump.  I always remind sellers how they would feel if they were the buyers in cases like this.  I also hate it when people say, it wasn't meant to be.

April 13, 2010 02:35 PM
Rainmaker
260,268
Wayne B. Pruner
Tigard Oregon Homes for Sale, Realtor, GRI
Oregon First

That's always tough. You need to keep your Buyers from being discouraged. I always warn mine that this very scenario could happen. Good luck.

June 02, 2010 01:02 AM
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Rainmaker
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J. Philip Faranda

Broker-Owner
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Additional Information

Phil Faranda is broker and owner of J. Philip Real Estate LLC in Briarcliff Manor, NY. Since founding the firm as a sole practitioner in late 2005, the team has grown to over 30 agents & closed 350+ transactions valued at $140 million. He is in his 4th term as Vice President of the HGMLS. This blog commentary is geared toward consumers and industry colleagues alike. You can reach him at (914) 723-8900.
Warning: *Sarcasm and irony advisory at all times.*



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