I understand that we need to seek advice from an attorney on this topic and we are going to find one. But thought of leveraging Bogleheads power of knowledge and experiences.
Context: We are interested in buying a house that is on sale through Bankruptcy chapter 7. The selling agent asked to first make an offer using a simple one page document.
- We made an offer for $X. There was another offer lower than ours.
Selling agent disclosed (verbally) the offer amounts to both parties and asked to raise offers if we like.
Next day, other party raised their offer to beat ours.
We raised our offer to beat their.
This verbal bidding went on for few days before we backing out when other party beat our offer of $X+Y.
After few days, selling agent reached out that other party has backed out so they are not signing the formal purchase agreement.
Given this, they asked if we would like to sign the contract at our last max offer $X+$Y
What do you think of us reverting to our original offer and nullify the verbal bidding? We feel that we are logical but we do not know how verbal bidding is legit in such case.
Will you suggest to make an offer at $X+$Y? We feel that we competed with ourselves if we make this offer.
PS: We do understand that it is Bankruptcy sale and anyone can beat the max offer until court approves it.