My Higher Offer Rejected, House Went to Lower Bidder?

[Mary B.]

Hi Everyone,

I'm a new(ish) investor in the Atlanta market, buying primarily in southwest ITP neighborhoods.  I've had the experience twice now where my higher offer was rejected (in a highest and best scenario) only to have the house go to a lower bidder.  The properties were both rehabs in two completely different areas (North Decatur & Pittsburgh) and two completely different price points with two different seller's agents.  Both offers utilized escalation clauses.  The Decatur home actually went for $5,000 under my bid. 

I'm trying to understand the context where the agent would reject a higher offer in favor of a lower one, so I would appreciate the expertise of any agents in the forums so that I can avoid this costly mistake again.    

We've speculated that the offers may have been rejected because of the due diligence period being 7+ days, or perhaps being contingent on inspection, but have received no feedback from the agents as to the true cause.  Do any of you have experience or advice in such a situation?  We have shortened our DD to 3 days but I would like to learn more from the perspective of the listing agent as to what would precipitate such an outcome.

Thanks so much!