Seller accept lower bid

UPDATED: Sep 28, 2017

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Seller accept lower bid

Can a seller accept a lower bid that is offered on a home… I recently put a $183,000 and no closing with 10 down bid on a home going for $179,500 and just found out that an offer of $179,500 was accepted? How can this happen?

Asked on September 28, 2017 under Real Estate Law, Ohio


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If they had entered into a contract with you, they could not: once they sign the contract, they are obligated or bound to it, and if they won't comply with the contract, you could sue for breach of contract.
However, if they had not actually accepted your offer and signed the contract, they are free to take a lower offer: there is no law requiring the seller to take the higher offer or the earlier offer. Rather, sellers have considerable freedom as to which offer they will take. I took the lower offer for my own home, for example; while it was around 4 or 5% less, it came from people with a much more stable income (a regular salary, and not commissions), had a larger deposit, and was a conventional, not FHA loan, all of which made the deal look more "solid" and likely to go through; that was worth giving up some money for. So sellers can look beyond the sale price to decide what offer to take.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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