grandparents' reverse mortgage/realtor rushing sale

[Jared Espindola]

Hi all,

A little background since there is a lot going on here: 

-My parents recently bought a duplex and my grandparents are moving into one side as their house is too large for them to take care of at their age.

-The profits from the sale of my grandparent's house will go towards paying the duplex's mortgage. 

-My parents are currently evicting some inherited tenants from the duplex and the other side is rented to new, hopefully long-term tenants so my grandparents will not be able to move in for several months. 

-My grandparents unfortunately had a reverse mortgage several years ago and currently owe $290k on their house.

The realtor set an asking price of $399k , this is low in my opinion - the house needs a little work but is large (4 br, 2 bath, parlor, dining room, kitchen, laundry room), they have a big backyard and a side yard the size of another lot in a good neighborhood. Other smaller houses in the neighborhood have sold for $450k+. The house went on the market Thursday and today they had a family offer the asking price (minus closing costs which they want my grandparents to pay). Their realtor told them to accept the offer instead of holding an open house or waiting for other offers. She also took awful pictures of the property, listed it as a 3 br and did not mention the laundry room in her listing.

After looking through the realty company's past sales, 90% are at or below asking price and sold within a week of being listed. It looks to me as if their business model is to turn around a large number of sales as quickly as possible. My grandparents are in no rush to sell so this seems like a bad fit. The more money they can get from their sale, the more breathing room my parents have to cover the mortgage of their duplex.

My grandparents are stubborn and want to trust the realtor / sell to this family that has offered asking minus closing costs (they met the family and liked them, want a nice family to move in and "don't want to be greedy"). 

1. I've been told my grandparents have a contract with the realtor so they cannot switch to another realtor. I'm a newbie on here but is this possible? I would think that they could choose to find a new realtor that better matched their interests, especially since the one they have seems lazy and uninterested in getting a fair price for the property.

2. Are there other possible solutions besides my grandparents selling the house? Can they keep their house and rent it out or will is this not allowed with a reverse mortgage?

This is moving faster than I had anticipated and I'm worried my grandparents will be pressured into selling their home for much less than it's worth. I've been trying to do some research on my own but any advice anyone can offer or if someone could help point me in the right direction I  would be really appreciate it.

Thanks!