I call bullshit that realtors successfully sued anyone for not accepting an offer because after seeing offers, the seller decided they could get a better price by waiting. The listing agreement -in no way- obligates the seller to to accept an offer you bring him that meets the terms of the listing.
Your arguments sound line the exact reason the lawsuit and settlement happened... Suing the people you list for, “firing” sellers, etc.
Well...that is not exactly correct.
Every listing contract to which I have ever been a party has contained exactly such terms. It appears to be a standard form in this State and several others.
If the seller receives a full-price unconditional offer they are obliged by listing contract to sell the property and the agent gets their commission once the sale is closed. A seller refusal is a distinct breach of contract, for which the agent may receive some kind of payment. A failure at closing may allow the seller to void the contract if the seller is not at fault for the failure to close. "Conditions" imposed from the buyer may also be grounds for seller refusal.
For residential sales, these terms are usually regulated by State laws and the listing contract may in fact be a required standard form.
"Your milage may very", depending on the State in which you are performing the sale.
Be careful of that bullshit. You just stepped in it.
Google has this to say.
If you turn down a full-price offer, you may still have to pay your agent, depending on the contract.
You suggested that the seller realized they underpriced it?
How common is it for a lawsuit to come from turning down a full price offer?
One thing I definitely see is real estate agents encouraging clients to list a house too low. Presumably, they will take the loss of a small part of the commission, just to achieve it quickly.
On two occasions, I have heard sellers tell real estate agents that what they are suggesting as a listing price is too low. The agent tells them something like, that's fine, we'll list it at that price to provoke intertest, and we'll end up selling it for more.
flamberge , Responsibility2nd if the agent said something like that, will it impact the lawsuit? Because they are portraying the asking price as a strategy, and they don't say you will be required to take an offer at this price, no matter what the small print says.