Multiple offer situation....what would you do? (Sugar Land: sale, loan)

[elephantshoe]

We saw a house on Saturday (was just listed the Friday before) and told our agent that night we'd be making a full price offer. We officially submitted our offer on Sunday 5pm - full asking price, conventional loan with over 30% down payment, no contigency to sell existing home, flexible closing date (we entered a date 6 weeks out but said we could close sooner or later if they preferred), standard option period and appraisal contingency. We only asked to keep their existing excercise equipment and patio furniture. I feel that this was a very strong, clean offer.

When our offer was received Sunday, the listing agent said there were a couple showings that day. I know there was another showing right after ours on Saturday as well. I expected this home to be in high demand - fair price, great lot, excellent condition (but I would want to upgrade the kitchen and baths before moving in). On Monday afternoon the listing agent says they are expecting another offer and we can give a better offer by 5pm if we want. We increased our offer by 5k. The agent said she would go over both offers with the sellers after they get off from work. That night my agent receives an email saying the sellers should have an answer the next evening. We wait all day Tuesday and at 8pm I finally ask my agent if she's heard from them. At 9:30pm my agent says the listing agent texted her to say she's on the phone with the sellers. 20mins later my agent gets an email from her saying the sellers are still deciding between our offer and the other. In the email, the agent send us the seller's disclosure (which I asked for on Sunday and it was signed by the seller before the house was listed so I don't know why I didn't receive it sooner). She asks us to sign it "in order to compare apples apples". She also says the other buyer is out of the country and is waiting to get their pre-approval letter from the lender. Once the sellers get all of the above, they can make a decision and hope to respond by tomorrow evening at the latest.

We've looked at many homes and made other offers that didn't work out so we know the market in this area very well and know what we want. We're ready to jump on a house when we like it. My significant other is willing to walk away from this house even though we both really like it (but not in love with it). It seems like the sellers are leaning towards the other offer but are stringing us along just in case. We've given them everything they've asked for and more. Could they be waiting for even more offers?

[diggity101]

Just offer up to what your were willing to pay from the beginning, based on the comps and condition of the house. Put your best foot forward but don't get emotional and overpay just because there is competition. There will be other houses.

You can always put a deadline on your offer but I'm not convinced those are very effective in these situations.

[eastontracks]

Not sure how it works for the sellers (I'll soon find out as I'm listing my property), but If I was the seller and saw yours and the other potential buyer who's out of the country & waiting for paperwork, I would've gone with your offer.


You did everything right. Risky for them to keep you waiting, especially if they just wanna see if a better offer will come.

[ipuck]

Homeowner just want to get the most money possible, simple as that. Your offer is probably less than the oversea buyer. They might or might not even need a loan. Lot of agents in Sugar Land all have stories about Asians giving them bags of cash ready to paid now for the house.

Beside if they already got 2 more than full asking price offers in 2 days, they will certainly get more offers if they wait longer.

Set a limit and don't look back. You did all you can.

You can always put in a backup offer, I think you just lose the option fee i think.

[elephantshoe]

Originally Posted by ipuck

Homeowner just want to get the most money possible, simple as that. Your offer is probably less than the oversea buyer. They might or might not even need a loan. Lot of agents in Sugar Land all have stories about Asians giving them bags of cash ready to paid now for the house.

Beside if they already got 2 more than full asking price offers in 2 days, they will certainly get more offers if they wait longer.

Set a limit and don't look back. You did all you can.

You can always put in a backup offer, I think you just lose the option fee i think.

If the other buyer didn't need a loan, then the sellers wouldn't be waiting for them to a get pre-qualification letter from the lender. I have to guess that the other offer is higher but something is preventing the sellers from accepting it at this time.

[ToyYot]

I'd tell them to take hike.

And when I was looking at properties I did put a deadline on my offers, nothing unreasonable, but so I know before hand when its time to walk away. I wouldn't allow others to use my offer to get a better one.

Yes, there will be other houses.

[marksmu]

Just tell them you are considering other properties and that you are considering an offer on another home and that if you do make another offer you will withdraw your offer. You can withdraw it anytime prior to their acceptance.

I agree the other offer is probably more, but the financing is questionable...make the sellers do something or pull your offer.

If you are not in love with the house wait - there will be more houses in the area you want...there always are.

[usulbaggins]

This exact thing happened to us when we were househunting in Woodlands couple months back. A house went on the market in the morning, we saw it twice that very day, made an above list offer by end of day. We gave them a 12 PM deadline for decision next day since we were on a househunting trip and could not wait forever for the seller to decide. We know there was another offer as well. Our offer was clean....no contingencies to speak of, flexible closing, pre-approved and 40% down payment. I have no idea what the other offer was like.

Bottom line....we heard nothing by our deadline. We rescinded the offer and moved on to our plan B. We do not regret our decision for a moment.

As for what the seller might want to seal the deal....who knows. They might have mispriced the house and are re-considering it, the other offer might be simply better (but riskier), the seller's agent might be doing a poor job (or worse, has a sale worked out even before the house went on the market).

My advice, move on. Have a second choice in place. Every house is a compromise. It is the life you live in it that makes it a home.

[Failed Engineer]

The other offer is higher and riskier. They are also emboldened by the fact they got 2 above ask offers within hours of listing so they aren't in a hurry to accept any offer. They are probably realizing their agent mispriced the home.

If you value the house at a higher number, offer it and say it's good only for 3 days. If deal doesn't get done, walk away. There will always be another house.

[Memorialite]

What part of town?
How much more time do you have to find a place?