I’m new and this is my first post, so forgive me if I’m out of line asking this question.
Sunday, I made an offer on a home that had only been listed for 4 days. We did the offer electronically via signed documents on my iPhone and I was told that it was received by the listing agent. My realtor, who was not with the listing agent’s company, told me that there was another offer on the table, but that it hadn’t been accepted yet, and that a relocation company was involved as the sellers had already accepted the relo company’s offer. So, I figured that the best offer would be sent in Monday when the relo company opened for business.
So, against my realtor’s indirect advice, I offered the full asking price. He told me that with two offers on the table, I would probably be asked on Monday morning to make a “Best and Final Offer” and that he felt good about my offer being accepted because the asking price was probably 20K over the value of comps in the area and he doubted that the other offer was above the asking price.
Monday, yesterday, rolls around and my agent tells me that my offer wasn’t accepted. I asked him what happened to me being asked for a “Best and Final Offer” and he said that the other offer must have been substantially over my offer. This sounds extremely odd to me as I’ve been looking for a home for a year or more and my agent and others have told me that the homes in my areas sell for 92% to 98% of asking price.
None of this sounds normal to me. Even though a relo company was involved, wouldn’t the listing agent want to get as much as possible for the home?
Also, since my agent doesn’t work for the listing agent’s company, if the listing agent was the one that showed the home and got the offer, is it legal for the listing agent to not forward my offer to the relo company in order to keep all of the commission? (I might also add that the listing agent is super successful and makes a ton of money selling real estate. It’s not like she is a newbie and needs the money.)
And, would a relo company not care about getting the highest amount possible for the home?
[QUOTE=Bill H;893998]Bit confusing,do you know who ACTUALLY got the home? Relo company or another buyer?[/QUOTE]
I was told that the owners of the home had accepted the offer from the relocation company and that the relocation company was the entity that listed it and they would be the ones deciding which offer to accept.
If you think it is confusing, you should have been on the phone with me and my realtor when he was trying to tell me that the relo company had made an offer on the home and he didn’t convey to me that they then controlled the entire selling process, not the deed owners.
John, I’m retired real estate investor, and as a seller, I had on a few occasions not sold to the highest bidder.
As to relo companies, I don’t know what arrangements the seller has with the relo company in this case. I myself was thru a corporate relocation, and I chose to sell my home thru the relo company. This way, the property is off my hands and I don’t have to worry about an unsold home out of state.
As it turned out, someone we knew wanted to buy the home, so I referred them to the relo company with whom they completed the purchase. You can do the same.
One other point. As a seller, it’s not the highest bid, but the quality of the buyer and bid. When I was a newbie, I tried a flip (my first), went for the highest bid, the buyer tried for 8 months to close, finally had a mortgage and closing date. A week before closing, he announced he lost his job and the bank reversed its approval.
I could’ve closed, and months earlier with other lower bids.
If you mean the confusion is what the role of the relo company is, they simply have the property under contract, and they will in turn will sell it to an end buyer, pretty much like a flip transaction.
In my relocation, I had the choice of selling to the relo company or to an end buyer, a family friend, who approached me. In fact I had several potential buyers. I chose the relo company because my company paid them to handle all the details of the sale, the risks of holding the property, plus the risk if the end buyer falls through, which would leave me hanging with an out of state unoccupied property.
So I referred our friend to the relo company, who in turn closed with them. The one big difference between this transaction and a flip is the flipper keeps the profits. In my case, the family friend paid 80K and I had a contract with the relo company for 75K, and I was then paid the difference after the closing.
My company covered all the purchase and sales expenses. From the original post, it seems the seller had the same deal with his relo company through his employer.