Seller Takes Lower Bid

[Todd Harris]

I have been trying to buy a number of properties to flip or rent out in Atlanta.  On a couple of them the sale price has been lower than the one I offered.  I am doing all cash and 5 day due diligence and escalation clauses.  On one I offered 70K and escalation up to 82k and the house sold to someone else for 75k.  My agent said that he didn't trust the agent who was the sellers agent as they work in the same firm and she had a bit of a reputation as not being completely honest.  Is it legal for agents to take these lower offers?  Is there something I can do to prevent getting screwed like this?

[Brian Pulaski]

Have you determined that the other buyer didn't offer $85k, get the property under contract and then it was negotiated down to $75k after there were issues uncovered? I only ask because if this was one isolated incident, it is possible their offer was better up front, but negotiations dropped it back down.