House searching and have lost 5 bids! Unusual? (Durham, Cary: foreclosure, buying a home)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 12 days ago)
Location: Cary, NC
43,141 posts, read 76,719,434 times
Reputation: 45473
Quote:
Originally Posted by freshjiv
OP, I actually would highly recommend putting in an escalation clause to your next offer. I know some realtor's here and your own said they aren't for it, but trust me, its worth it. I have gotten homes for 2 buyers of mine doing just this recently.
I actually have a NC attorney-approved escalation clause document I use. Main points are you state you will pay up to $X,XXX over the highest price that is offered, up to a total offer amount of $XXX, XXXX, and that you require proof of the highest offer within 2 business days (and the listing agent blacks out the other offer's personal details except for the financial part).
PM me if want further details.
How does the listing agent share price and terms of an Offer, when it is unethical and illegal to share price and terms of an Offer without the Offerer's permission in writing?
Once an agent blacks out the price and terms to provide the Offer to the Escalator in an ethical and legal manner, how does the Escalator know what the price and terms actually are?
I guess it is a good thing that the NCAR Buyers Agency Agreement disclaims that all agents cannot be guaranteed to act ethically, to not shop the Offer.
Hah, I know. As we always say "talk to an attorney" right. Well this is straight approved from NC Bar attorneys here in the Triangle so i know it is fine since they signed off on the language that my firm uses for this document.
Quote:
Originally Posted by MikeJaquish
How does the listing agent share price and terms of an Offer, when it is unethical and illegal to share price and terms of an Offer without the Offerer's permission in writing?
Once an agent blacks out the price and terms to provide the Offer to the Escalator in an ethical and legal manner, how does the Escalator know what the price and terms actually are?
I guess it is a good thing that the NCAR Buyers Agency Agreement disclaims that all agents cannot be guaranteed to act ethically, to not shop the Offer.
We hired a broker in October to help us passively look for homes, so we could move quickly once we were ready to buy in the Spring. We were lucky to find a great home that had been on the market since May without any offers. I'm grateful we had the time to bring in a contractor and visit multiple times before making an offer, and we got a better deal. Hopefully more houses become available, but it seems like people are afraid to sell their house because they won't be able to afford anything new.
On a blog I still follow, a person said he was happy to lease a 2 BR for $2K even though it had a rat problem.
That is a bargain in NYC. Rat problem or not. Just hire an exterminator. My husband and I laugh about how much lower our standards were for housing when we lived there. Worth it to live two blocks from the subway though.
Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 12 days ago)
Location: Cary, NC
43,141 posts, read 76,719,434 times
Reputation: 45473
Quote:
Originally Posted by freshjiv
Hah, I know. As we always say "talk to an attorney" right. Well this is straight approved from NC Bar attorneys here in the Triangle so i know it is fine since they signed off on the language that my firm uses for this document.
Oh, but, you can ASK for just about anything. I am sure the attorney would agree.
The ethical and legal onus is on the agent who delivers improperly.
Maybe it wouldn't be that bad here since the OP could outbid someone easily at that price range haha
Well sure...but is it a good idea for anyone for the OP to pay $400k for a $300k house?
If that type of thing starts happening....buyers in that $300k range will be even more screwed than they are now!
Not to mention that means OP would likely be in a negative equity situation (assuming they were paying cash; which it doesn't sound like they are...otherwise paying a hefty differential downpayment when the house doesn't appraise).
Well sure...but is it a good idea for anyone for the OP to pay $400k for a $300k house?
If that type of thing starts happening....buyers in that $300k range will be even more screwed than they are now!
Not to mention that means OP would likely be in a negative equity situation (assuming they were paying cash; which it doesn't sound like they are...otherwise paying a hefty differential downpayment when the house doesn't appraise).
You can only pay so much because if the house doesn't appraise and the buyer walks, then the seller has to deal with getting offers again. The good thing with a lower priced house is that if they are looking at $400-500K, they can offer more for down payments and due diligence in compared to their competition (though there is greater chance for cash buyers at that rate)
We had a similar experience. I am not a fan of dibbing wars and will not try to out bid anyone. We decided to rent short term while we continued to search and take the pressure off. It's made the process less stressful.
Are you buying a home on ebay? Because I have yet to see a "bidding war" here. You submit highest and best and that's it. There's no going back and forth unless the seller wants to counter some terms like closing date. The term "bidding war" is just silly.
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