Buyer: How to make sure the seller stops shopping around after taking our offer?

**Celesta** · 06-01-2010, 12:19 PM

We are first time buyers in the Greater New York area, with a buying agent. We found a house and made an offer that the seller verbally accepted, according to the selling agent. However, when we came for a $500+ engineering inspection, the selling agent said they got a bigger offer. They posted the house on Craiglist after scheduling the inspection and someone took interest in a matter of two days that passed between the offer acceptance and the inspection. We had to back out, because the offer was above the market estimate. Then the situation happened exactly the same way with a second house.
We asked our agent if next time we can have a binding agreement firsthand to protect us if we pay $$$ costs of inspection, attorney etc and then the sellers "post on Craigslist". The agent says, there is no such practice in New York state. Is it true? He also said there is no practice of making a deposit to convince the sellers to withdraw all advertisement. If so, how else can we protect ourselves? If no, does it sound to you like our agent has some agenda he does not share with us?
Is it ethical for the sellers to shop around after they verbally accept an offer?
Very frustrated here and would appreciate any advice.

**malcolmjohnston** · 06-01-2010, 01:01 PM

I'm not from New York, but I'm pretty sure the basics in real estate are the same everywhere in the civilized world.
Firstly, real estate cannot be done verbally. Put a proper offer in and get it accepted. Until you have a written agreement, you pretty much have nothing.
Until the offer has firmed up (all conditions have been met - ie you have fulfilled or waived the financing, home inspection, or whatever clauses have been inserted for your own protection) I would not expect the seller to stop advertising. He would be foolish to do so. What would happen if the inspection isn't to your liking and you decide not to go through with the deal. He will have lost valuable marketing time.
Until your offer is a firm and legally binding contract it is in his best interest to continue attracting other potential buyers.

**Celesta** · 06-01-2010, 01:09 PM

Originally Posted by malcolmjohnston

Until your offer is a firm and legally binding contract it is in his best interest to continue attracting other potential buyers.

That's what our agent says too, but then is there any way for us to know for sure they did receive competing offers? What if they are bluffing because they got cold feet and want to get a bigger buck from us? Does it mean that we have to pay all the fees for inspection and attorney without having any guarantee about the price whatsoever?

**malcolmjohnston** · 06-01-2010, 01:25 PM

Originally Posted by Celesta

That's what our agent says too, but then is there any way for us to know for sure they did receive competing offers? What if they are bluffing because they got cold feet and want to get a bigger buck from us? Does it mean that we have to pay all the fees for inspection and attorney without having any guarantee about the price whatsoever?

This is precisely why your agent has to present them (or their agent) with an offer. The offer will be negotiated (on paper) back and forth until there is an agreed upon price. It will be up to you (the buyers) to fulfill the conditions (home insp., insurance, financing - or whatever else is put in there to protect you).
From the time your offer is accepted until the time the conditions are fulfilled the house can still be marketed, but no other offer can trump yours. The reason the house will still be marketed is so that the sellers will have a backup in case your offer with them falls apart.
They cannot "cancel" your offer and accept one that offers more money. They still can leave their house on mls and market it however they see fit - in fact I wouldn't expect them to do anything else.
Once the offer has firmed, and you have met the conditions, only then will they stop advertising the house. To do anything else would be foolish on their part.
However, as I stated in my first reply REAL ESTATE CANNOT BE DONE VERBALLY. Get your agent to submit a proper offer so that you can start the process properly. Then you'll understand why there is a complex set of forms to safeguard buyers and sellers.

**Greg** · 06-02-2010, 10:18 AM

A written offer is not binding until it is signed and then it becomes a contract. The 2 terms, offer and contract, are not interchangeable.

Do not do any inspections or spend any money on the house until you have the signed contract in your possession.