In a multiple offer situation, is it legal to have the highest offer and lose the house to another offer?

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In a multiple offer situation, is it legal to have the highest offer and lose the house to another offer?

Said house is a foreclosure.

Asked on February 6, 2011 under Real Estate Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

There is no law saying that the highest bid or offer must win the day (except in an actual auction, where not selling to the highest verified, valid bid is a violation of the agreement[s] governing the auction). In other contexts, including even multiple offer situations for a home that's in foreclosure, the seller can choose any winner it likes, and many factors other than price--such as the type of finacing (e.g. cash or loan), whether there are contingencies or not, closing date, etc. are also factored in. At the end of the day, a seller may decide whom it wants to sell to, and the highest price doesn't always get the goods.


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