Seller has higher offer after I've signed the purchase contract NYC

[scotty]

Hey guys, I literally just emailed my buyer's agent that I signed the contract, and then I hear this:

Seller’s agent just emailed me a few moments ago that they received an offer above asking price at $260K. Seller will take highest offer.

What am I supposed to think? Is this some sort of joke?

[aslan]

Yes unfortunately this can happen. Nothing is binding until each party signs the contract. For the seller that means they can sell it to someone else as long as they haven't counter-signed the contract.

Can you share more context on your situation?

[scotty]

Sure. Read it all. Here's my convo with my buyer's agent. Happy to hear any thoughts or advice at this point. My comments are in normal font, and my agent's responses are in italics:

My gut reaction is to tell the seller to take the higher offer, but say nothing yet.

I think it is all a game just to get you to come up on your price since sellers 1B and 3A talk. We will never know if they really have another offer on the table, but it can be a possibility since a lot of time passed. It all boils down to what you are willing to pay for a unit.

Original asking price is $255K. They claimed it appraised for $250K and now they are hoping you go above $260K. They will not proceed until they hear back on what you want to do.

By the way, I'm annoyed enough at the sellers of 3A that I'm contemplating withdrawing my offer.

All I have to tell the agents is that you will not increase your offer and they will just take the higher offer without me having to say anything else further. You will receive your earnest money deposit back and you can walk out of deal free and clear. Although, you already signed the contract it still has a mortgage contingency so you are still in the clear since they will go with the highest offer.

The coincidence is just too great. I sign the contract yesterday, Paul my lawyer mails them the check yesterday (I think he did so, though I'm not sure), and *today* they get a higher offer? Doubtful.

Very doubtful. Monday, Feb 26 at 7:55 PM agent emailed me asking if you signed the contract already because they received another offer. I didn’t hear anything else about any offers until today after you signed the contract (not sure if same offer from Monday evening).

It can very well be just another shady tactic on their end to get you to increase your price especially since they know you are getting 1B as well (because 1B and 3A area talking to one another). Like I mentioned before, we will never know if there is truly another offer on the table for above ask unfortunately. They may have another offer, but I don’t think it is for $260K.

Let me know what you want to do so I can inform the agents.

We'd heard about the "other offer" earlier, but they didn't say it was higher. The coincidence of the matter bothers me. Let me talk to Paul tonight and get back to you.

It’s a very shady tactic that some agents use. They call it impeccable negotiating skills, I call it unethical. If another offer did in fact come in, I feel that offer price came near or same as your offer-definitely not $260K because then the agent wouldn’t have asked me if you would go up to $260K.

What you are going through is all too familiar for me because I had this same exact issue happen with me on another client less than a month ago. Property was on the market for nearly three months with zero activity and agent verbally agreed to our offer, tells me to put it in writing and once I did, she declined it and stated another offer came in. We walked out of the 1.2M deal and buyer went with her second choice instead. Shady tactics infuriates me.

[lower_nyc]

Listing estate agents in NYC have a poor reputation for good reason! There are loads of sketchy listing agents out there who habitually lie about offers and engage in other unethical dealings.

As a buyer or investor, you simply need to look past these antics and determine: a) what the property is worth, and b) how badly you want the property.

Personally, in the situation above I don't think $10-20k is a huge amount of money if this is a buy and hold investment (especially if you are financing). The different on your monthly payment would be something like $100...

However if you think that is overpaying and/or you are offended that the listing agent is lying, call their bluff and stand firm on your original offer!