Offer wihtout agent -> unexpected result
So here are the relevant events:
- I made an offer to purchase, directly to the seller's agent, 575K
- Seller's agent told me there are 5 offers in total
- Same evening seller's agent calls me, tells me they are currently deciding between my offer and another one:
- "My offer has better conditions (downpayment, etc.) but they would accept if I increase to 600K, if not the seller will accept another offer (even if it has riskier conditions)"
- I asked whether that "higher" offer was made through a buyer's agent, or directly, i.e. are there two agents involved or one?
- I got confirmation that the other offer was made through another agents -> they will split the sales commission
- I performed a simple calculation (see below), and offered to bump my offer to 590k
- next day the call me back, that the seller accepted the other (600k) offer
Here's my calculation:
Let's assume 5% sales commission.
Other offer is 600k.
The seller's agent makes 15k (2.5%) and the buyer's agent makes 15k (2.5%), because they split.
At the end of the day, the owner gets 600k - 30k = 570k.
My offer is 590k.
So the seller's agent makes 29.5k (5%). This is enough for the seller's agent to give 10K to the owner, so the offer becomes 590K+10K, and the agent makes 19.5K.
At the end of the day, the owner gets 590k + 10k - 29.5k = 570.5k.
And of course the seller's agent could throw in 1-2k more to sweeten the deal for the owner, and still make more than the other option!
Does anyone understand why would the seller's agent and the owner pick the 600k offer in this case? Wouldn't it be better for them to pick my offer (especially considering better conditions on offer)?
From what I can understand, my offer was a win-win-win, for owner-agent-me.