multiple offer situation Q (Dallas: how much, houses, buying)

[MovingtoDFW]

On a home we are potentially interested in and have made an offer on - my agent was told we should give our final & best offer as they have 3 other offers, and that ours is 20k below the others.

We sort of like the home - but it is not really our dream home, and we are not sure if it is worth that much.

Pardon the possibly naive question - but how does one know if the seller's agent is being truthful about this? Are there any checks & balances in the system so that the seller's agent cannot exaggerate about offers?

I am especially curious as the home also got put up today - the same day we were informed about the multiple offers - for a weekend open house.

[BigDGeek]

Originally Posted by MovingtoDFW

On a home we are potentially interested in and have made an offer on - my agent was told we should give our final & best offer as they have 3 other offers, and that ours is 20k below the others.

We sort of like the home - but it is not really our dream home, and we are not sure if it is worth that much.

Pardon the possibly naive question - but how does one know if the seller's agent is being truthful about this? Are there any checks & balances in the system so that the seller's agent cannot exaggerate about offers?

I am especially curious as the home also got put up today - the same day we were informed about the multiple offers - for a weekend open house.

Then don't bid up on it. Find another house that you do like!

[GripeWater]

There is no way to tell for sure and many sellers or agents do bluff but usually sellers wouldn't want to loose a real offer as their hypothetical buyers may up the bid but can't buy the house. :-)

[Rakin]

Seller and their agent can't risk running off a good buyer by lying.
Many Buyers would not want to bid in multiple offer situations and would leave.

If they didn't have other offers, they would lose the good offer they did have.

And we agents are suppose to be honest in our dealings with others. (That may not always happen but most try). Our reputations in the community is important.

[SouthernBelleInUtah]

Dallas' market is hot, hot, hot! Houses are selling at or over asking price in days or even before they officially come on the market. Not all areas of course, but many. In some areas inventory is quite limited, which drives this bidding war.

[nsumner]

Since you don't like the home that much, you may just pursue another home or give the offer you think it's worth and expect to lose it.

You don't have a way to find out really if the listing agent is exaggerating that they have multiple offers. As Rakin stated, we are supposed to treat everyone in fairness.

Naima

[sossie]

If you want it, get in the game and bid on it-if not why worry about it. Multiple offers are not unusual in competitive markets. FYI-my friend listed her house on Monday morning (not dfw area) -had 9 offers by 2pm-under contract already...buyers waived all contingencies ....

[robmab]

If you only "sort of like the home," are there others available that you haven't seen yet? Are you in a hurry to move?

If you aren't on a strict timeline and have the time to look around, then this is probably not the house for you. Even if you come up in the $$ in your offer, with multiple contracts on the table, the seller is going to look at things like contingencies (i.e., inspection, financing, appraisal) and how much cash you're putting down. You're likely going to have to give up more than extra $$ to get this house that you aren't even sure you like. Walk away.

[TurtleCreek80]

I don't understand why anyone would even consider writing a contract on a house they only sort of like. Bizarre!

Op, don't be desperate. A house is the most expansive purchase you're likely to ever make, so don't treat it like an "eh" cocktail dress that you are only buying because your event starts in 3 hours

[BeanyMalone]

If you trust your agent and your agent believes there are multiple offers, trust him or her on this, too. My guess is the s/he has a pretty good BS detector if they are at all good.

You liked it enough to put in an offer to begin with, so make the best offer you are comfortable with in light of the totality of circumstances (the pain of continuing the search, when you want to move, the uncertainty of finding something similar or better). If you already gave them your best offer, then you have and move on without second guessing yourself.

I am not an expert, and I know there are many on here who are, but I wonder, though, if the news about interest rates will spook people into activity and make things even more competitive in the short term.