is this legal

When you hear that real estate fraud is higher now than ever, this is what they're referring to. Bank owned properties that are sold to the listing agents back pocket buyers... we've seen scenarios where the listing agent gets 5 or 6 offers on a property, but only submits the offer from her buyer, which of course is the lowest offer of all... but that's a topic for another time.. The listing agent has to present all offers.. cash or otherwise.. it's up to the seller (in this scenario the bank) as to what they will accept or not.. If the listing agent refuses to submit your offer, then you can call his broker and demand they submit it.. however this will usually be a waste of time.. just because you offer over asking price, does not guarantee the seller will get over asking price.. because your financing, your offer will be contingent upon an appraisal.. if it doesn't appraise for the higher sales price, then your lender will not finance it unless you're willing to come to the table with the extra funds.. cash is king.. so I would suggest you go find another property.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Yes it is, seller is not obligated to take highest offer. Cash deals are quicker, no need for an appraisal and seller doesn't have to worry about buyer qualifying....

Especially in a case like this, they are more apt to take cash.

I would suggest you work with a Buyer's Agent to find suitable housing. Making an offer should be done in writing and submitted through your buyer's agent. There is an issue with a Listing Agent not presenting all offers (in writing) to a Seller in most States, but a verbal offer (if that's what you provided) is not the same. Cash is usually a better option when all things are equal and a listing agent is supposed to represent the seller to obtain the highest and best offer possible. The highest offer may not always be the best offer, just to let you know!

First, you won't get legal advice on this site and if you do you should check with a local real estate attorney. The listing agent generally has a duty to present all offers (including yours) unless the seller (the bank) tells them not to present anything but a cash offer. If you know what bank you could try contacting them directly and notifying them but it might fall into a "black hole".

Yes, it is legal. Cash is easier than financing, so even though you might be offering a higher amount, the cash will be quicker. With cash the bank does not need to worry about the buyer being approved and does not have the risk of potential default in the future.

Royer, Only upon what you have said here, it might be a question of the seller (Bank) knowing or believing that repairs are needed to the home and an offer that is subject to financing might have problems because of the condition of the home. Sometimes sellers (banks) will prefer a cash offer because it will close quicker than one where financing is needed. Talk with your realtor or find a realtor that you can communicate with to understand what is being said without being said. From my experience a number of bank owned properties do require repairs, in those cases there are Rehab Loans that allow you to give the seller the agreed purchase price and then get the money needed to make the needed improvements to the home. This again is something you should discuss with your Realtor.

Yes it is as the seller can choose whomever they want even if it's for less money.

Yes, a lot times the seller would rather take the cash offer because they do not have to worry about the loan not going through and the house not appraising for enough and etc.

Sellers have been know to take a cash offer at a lower price vs. an offer contingent on financing. This happens all the time. Look at is from the sellers standpoint. What happens if they take your offer and you cant get the financing? They lose their cash buyer and have to start the sale process from scratch. Thats why cash buyers can demand better pricing than non-cash buyer. As the saying goes....a bird in the hand is worth two in the bush.

This could be for several reasons. Or it could be a case of fraud