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tomhere | January 28, 2009 11:07 PM | in Consumer Law

Trying to buy a house, accepted seller's offer, now they are asking for more money. Is this ethical or legal?

I'm trying to buy a bank owned foreclosed house in Maryland in the US.I put in an offer on a house and put up $2K earnest money, (although they have apparently not cashed the check). They countered with a slightly higher offer which I immediately accepted. Now they have asked if that is my "best and final offer". The inference (from my real estate agent) is that they now have a higher offer.I haven't signed anything, but I accepted their offer in writing (email). Is this "contract shopping"? Are they allowed to try to soak me for more money? Is this ethical and legal or is this just the way real estate sales works?Edit: Added that it is a bank owned foreclosureEdit 2: Added that I have put up $2k earnest money.

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BEST ANSWER chosen by asker | williamwaco | January 29, 2009 07:13 AM

Some of the best deals you will ever make are the one you miss.

Tell them no, you are ready to close, either close it or refund your money.

If you are dealing with a reputable title company the $2000 will be refunded.

As to the inspection; you will not be able to get a mortgage from a "real" mortgage company without a current inspection, a current appraisal, and a current survey. If they are not offering or asking for these. Run, don't walk to the nearest exit.

In the '80's crisis there were many unscrupulous people "selling" houses that the banks had repoed without the banks knowledge or permission. When the bank finds out, you are kicked out and whatever you have spent is just lost.

This is already happening in the Dallas Fort Worth area in 2008. I am not saying this is happening to you, It could be that they are legitiimate and really do have a higher offer. That happens all the time in boom times but it would be surprising in this market.

Since neither of you have signed a sales contract, neither of you have any real claim on the other. I would ask for my $2000 check back and look for another agent.

That is another issue. I don't think a legitimate real estate agent would take a deposit checkuntil you signed a sales contract. Are you sure "niether of you has signed anything?"

source(s):
Banker for 29 years. Worked for RTC/FDIC in the '80, 90's S&L cleanup.

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drmatt | January 28, 2009 11:11 PM

I don't know if that's legal, but it sure is shifty.

Do you want to buy a house from someone like that? Who knows what they haven't told you if they have marginal values like this.

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morriss003 | January 28, 2009 11:24 PM

Good point. Sounds like this house might need a thorough inspection.

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tomhere | January 28, 2009 11:25 PM

I just realized I should add it is a bank owned foreclosure. So who "they" are is a little nebulous.

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drmatt | January 29, 2009 12:06 AM

Then... I'm confused. The bank is asking for more money?

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tomhere | January 29, 2009 12:49 AM

@drmatt I don't know if it is the bank, per se, or the listing agent that is calling the shots on their side. One sketchy thing about this whole deal (according to my RE agent) is that they only communicate via email and don't seem to be available by phone.

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