Seller accepted lower-priced offer in bids war

Q:I submitted our best and final offer on a house that got multiple bids and never heard back, so I assumed we lost. Several weeks down the road, the house pops up “sold” for a lower price than our offer. Do you think this was a slipup or did the agent just want it this way? How can I protect myself in future bidding wars?

A:I am guessing you weren’t represented by an agent in submitting your offer. A good buyer’s agent would have discovered where you stood and what you needed to do to prevail. While there are times when you don’t need an agent, the lack of one in a multiple-offer situation puts a buyer at a distinct disadvantage.

There’s a chance your offer just got lost in the shuffle or the seller’s owner wanted someone else in there — perhaps a friend or relative — for whatever reason. But there are many other possibilities:

Some listing agents prioritize email offers from buyers’ agents over individuals.

The winning buyer paid in cash or was already prequalified to get a loan and you weren’t.

The earnest money you offered may have been so small that you weren’t taken seriously.

Perhaps your offer had an expiration date; an expired offer would then have to be re-activated, and the sellers may have needed to move fast at a certain point and took the path of least resistance.

You asked for concessions that the winning bidder didn’t.

The buyer may have even waived inspection, appraisal and other typical due-diligence measures to grease the deal.

There’s nothing illegal or unethical in any state about not responding to an offer. There is an ethical breach, however, if a listing agent doesn’t present all serious offers to the seller, but that involves the selling party, so there’s no recourse for you.

All that aside, it is rude and unprofessional for an agent not to respond to any legitimate offer.

If it would make you feel better, call or email the sellers directly and inquire why your seemingly generous offer was rejected, if in fact it was seen at all.

If there was something fishy going on and the listing agent was stacking the deck for a pal or favored buying agent, the sellers should know they didn’t receive all fair offers and that their agent acted unethically.

Next time, it would be wise to consider hiring a buyer’s agent.