Listing agent suspect to inside deal.

[carch]

What is the name of your state? California

I recently put an offer on a house that was 10,000 over the asking price. I did this because the home alreadly had two offers that the seller had already sent back counter offers on and I really wanted the house. When we submitted the offer, the listing agent told us that I had by far submitted the best offer. When the deadline came down, I was told that one of the other people had countered with an offer above mine. I suspect that the listing agent either "tipped off" another perspective buyer or not even submitt my offer to the client. There is no way that the seller countered any of there offers with a price higher than my offer when those counters went in before they even received my offer. The likelyhood that someone would come back and offer a price 10-20k over what the seller had just countered them is so highly unlikely, I think that the listing agent put together an inside deal for a friend. This is a great disservice to both the seller and myself. What legal recourse, if any, do I or the seller have if this is the case and can be proven?

[justalayman]

Originally Posted by carch

What is the name of your state? California

I recently put an offer on a house that was 10,000 over the asking price. I did this because the home alreadly had two offers that the seller had already sent back counter offers on and I really wanted the house. When we submitted the offer, the listing agent told us that I had by far submitted the best offer. When the deadline came down, I was told that one of the other people had countered with an offer above mine. I suspect that the listing agent either "tipped off" another perspective buyer or not even submitt my offer to the client. There is no way that the seller countered any of there offers with a price higher than my offer when those counters went in before they even received my offer. The likelyhood that someone would come back and offer a price 10-20k over what the seller had just countered them is so highly unlikely, I think that the listing agent put together an inside deal for a friend. This is a great disservice to both the seller and myself. What legal recourse, if any, do I or the seller have if this is the case and can be proven?

Without knowing everything about each of the offers, it is difficult to say yours was the best. If you included any contingencies it may have soured your offer. The thing is the RE agent and the seller would have both profited more buy taking your offer of it was the highest. They want as much money as they can get.

You make it sound like this was a closed bid, which I'm pretty sure it wasn't. The RE agent may have shown the seller your offer and told the other prospective buyers of your offer as well. After which they may have raised their offer to beat yours. Nothing wrong or illegal with this. They are allowed to "tip off" the other prospective buyers to get them to raise their offer. The only thing that is strange is they didn't come back to you to allow you a chance to raise your offer.

Now if your offer wasn't presented to the seller, the seller may have a claim against the RE agent and brokerage. You, on the other hand, have no claim. If your offer was higher than any other and the RE agent did not inform the seller, the RE agent may be on the hook for the difference.

[carch]

Thank you,
Ya it was the fact that I wasn't contacted to be able to raise my offer that really ruffled my feathers. I thought the price was definetly undervalued for our market and was prepared to go as high as another 20k. Thank you for your reply.