This email just came in and I feel for this buyer's situation. I can't tell you how many times I hear about these tales of woe from buyers, owners, etc. There needs to be alot more communciation between all parties in a transaction and more professionalism in these deals. If the facts are correct with this story this buyer should report the broker or agent to the
Department of Real Estate for unprofessional practice violations.
Here is the story . . . On 01/10/06 I responded to ad#XXXX and inquired about it. By 01/20/06 I made an offer of $40,000 even though they were asking $55,000 with takeover for April 01 or an offer of $43,000 with takeover middle of July (as we were going on vacation in June). They accepted the offer.
I went down to the establishment and met with the broker and the sellers on Jan 23 to work out payment at which time we agreed to move the takeover date to May 01. The broker and I worked out a payment schedule for down payment and remaining balance at that time.
I was advised that the sale would be written up and then presented to
me when completed. In the meantime I made numerous arrangements for the takeover of this business such as providing the lease company with info for credit, bank account inquiries, vendor appointments (since I wanted to change some of the product line), and a lot more arrangements that go with such a transition.
On Feb 07 I was informed by my broker that someone else had offered the full price and was to take over Mar 01 and that the sellers had accepted that offer. I understand that the other offer was better than mine, however, my offer was accepted first. As a result, I have had to cancel all appointments and have wasted numerous hours of preparation for the transition. I can understand that the other offer was better, but mine was accepted first.
I feel that my broker should have shown diligence in at least approaching me first and explain what was happening before the other offer was accepted so that if necessary I could have raised my offer to compete with the other or have been given the opportunity to decline.
I feel it was wrong to just inform me that the other offer was accepted without notifying me first since my offer was accepted first. I feel that this was bad business practice. Fortunately, I did not encompass any costs prior to this occuring.
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If you have a recent bad/wild experience for "
Deals Gone Wild" - examples of unprofessionalism, bad judgement by a business buyer, business owner, attorney, CPA, advisor, business broker or agent, etc in a business sale/buy transaction please email them to us at: services@USABizMart.com. Hopefully these actions will educate others and help them learn from and avoid these situations.
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