Do real estate companies have to sell for advertised pricing or can they raise the price after a full offers?

Question

I am interested in purchasing a house, listed on the MLS for their listed amount. I agreed to pay for the asking price, but the agent said they are taking offers to see if they can get more than their asking price. Since I agreed to pay their advertised price, and not offer a low amount, do not they have to sell the advertised MLS price?

Answer 1

As long as you do not yet have a ratified contract, meaning you made your offer in writing and the seller accepted it in writing; they can choose not to accept any offer they wish, even if it is for full advertised price. Several years ago when the market was really hot, this was a very common practice, to wait on an offer to see if they will get something better to "outbid" you. This would especially happen if they were getting offers very shortly after putting the home for sale...If we're getting offers this quick, why not wait to see what we'll get tomorrow? I am just surprised to be hearing about this in a crappy market.

Answer 2

They do not have to sell for the list price. The list price is typically the minimum price the seller is trying to obtain ( key word: trying ). If you offer the list price and the seller has 3 other offers all above the list price it is the sellers choice who they award the purchase to. The list price only establishes the desired price the seller is trying to obtain.

Answer 3

Give them (in writing) a THREE HOUR time limit before you withdraw your offer.  When you first write an offer, you can give them 2 or 3 days, but since the owner has already had a chance to review it with their agent, you basically are telling them - "Give me a yes or a no.  I'm not waiting for other offers."

Answer 4

You should have a deadline on your offer to prevent this. If you give them 5 days to answer they won't have much time to stall. They do not have to accept your contract if a better one materializes.

Answer 5

No.  Their offer does not constitute a contract.  Obviously they are trying to generate a bidding war.  My advice would be to withdraw your offer and tell them you are not  interested in a bidding war.  Another way to accomplish the same goal is to submit an offer with a deadline for a response say 72 hours. That way they can not shop your bid around to other interested parties.  Again, you do not want to be part of their marketing plan by agreeing to a bidding war which seems to be a more and more common tactic.  Good luck!!