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I'm not living in Silicone Valley, SFB or CA or any upscale neighborhood. I'm in the Midwest.
A property came on the market Thursday, it's a condo. Listed at $122,900, I viewed it immediately, I was the first to view and submitted an offer. Within an hour, the agent that showed me the property called and said that the buyer is doing highest and best on Sunday at 5:00 pm. This agent works for the listing agent. I'm assuming there's no conflict of interest here. The listing does not state highest and best/multiple offers received but that's the feedback I'm getting from the agent that showed me the property. Yesterday morning, my revised offer is in the running. Later that afternoon, your offer won't cut it, I suggest you offer $XXX XXX.
The market can only appraise at the sold comps. I'm not liking the way it seems the listing agent is going about the sale. If I was the seller, I'd list it for what the comps dictate, not try to ensue a bidding war, it has to appraise out, unless your a cash buyer, which I'm not.
My guts saying just forget about it as I dislike this game and it clearly feels like one. It's a "hogs get slaughtered, pigs get fat" deal, IMO.
I'll wait for any replies & thoughts.....
Last edited by photogal9; 04-21-2018 at 09:19 AM..
My guts saying just forget about it as I dislike this game and it clearly feels like one. It's a "hogs get slaughtered, pigs get fat" deal, IMO..
This is why I am out of the market right now. All homes in a certain price point are doing it to drive up prices. So the home is appraised at say 150K and someone does this... chances are someone is going to bid too high and ruin it for everyone else.
Though what I and seeing lately is that a lot of things are coming back on the market so it seems like people are bidding high to get it and then demanding a lot off after an inspection.
Also buy homes that need a lot of work. This over bidders go to homes that are turn key.
No one likes these 'highest and best' bidding situations where you can't even really see what your competition is.
Hard for us to advise, really.... we're not there, we haven't seen the condo or the comps, and you don't say how much you've already bid up, but I would search long and hard within yourself and decide what your 'highest and best' is, and if you've already made that offer, and won't feel bad if you lose it for a dollar more, then let it go, see what happens.
The market can only appraise at the sold comps. I'm not liking the way it seems the listing agent is going about the sale. If I was the seller, I'd list it for what the comps dictate, not try to ensue a bidding war, it has to appraise out, unless your a cash buyer, which I'm not.
What a property appraises at will not stop bidders with financing. You don't have to be a cash buyer to pay over appraisal; you need enough cash to pay the difference between the LTV your lender is using and the contract price.
Move on to something else. People rant about difficult buyers and sellers all the time--some screw up their deals and some succeed. Creating a bidding situation is just another technique, even if you don't like it.
I don't like games in RE, and I've seen a few. There is always another property that will hit the market and meet my needs. In 2012, we found our perfect home, a 90 day stale listing, and made a full-price offer only to hear back there was a better offer and they wanted our best counter. Our counter was to withdraw our original offer and walk away. The house was on the market another 6 months. Games. Magically, we found another great home a few miles away and bought it.
This is why I am out of the market right now. All homes in a certain price point are doing it to drive up prices. So the home is appraised at say 150K and someone does this... chances are someone is going to bid too high and ruin it for everyone else.
Though what I and seeing lately is that a lot of things are coming back on the market so it seems like people are bidding high to get it and then demanding a lot off after an inspection.
Also buy homes that need a lot of work. This over bidders go to homes that are turn key.
My first two bids waived inspection. That doesn't seem to matter to seller's. It's move in ready, if you like wall to wall carpet and unflattering paint. All aesthetics, I understand.
No one likes these 'highest and best' bidding situations where you can't even really see what your competition is.
Hard for us to advise, really.... we're not there, we haven't seen the condo or the comps, and you don't say how much you've already bid up, but I would search long and hard within yourself and decide what your 'highest and best' is, and if you've already made that offer, and won't feel bad if you lose it for a dollar more, then let it go, see what happens.
Sold comps are $110K - $128K w/3% cc's. I upped my second bid by. $3,000.
What a property appraises at will not stop bidders with financing. You don't have to be a cash buyer to pay over appraisal; you need enough cash to pay the difference between the LTV your lender is using and the contract price.
Move on to something else. People rant about difficult buyers and sellers all the time--some screw up their deals and some succeed. Creating a bidding situation is just another technique, even if you don't like it.
I don't like games in RE, and I've seen a few. There is always another property that will hit the market and meet my needs. In 2012, we found our perfect home, a 90 day stale listing, and made a full-price offer only to hear back there was a better offer and they wanted our best counter. Our counter was to withdraw our original offer and walk away. The house was on the market another 6 months. Games. Magically, we found another great home a few miles away and bought it.
All understood, I've bought and sold 2 properties in the last 5 year's, I didn't play games though. Here's what I can afford, here's what I'd like my net to be on sale. No b.s. involved
All understood, I've bought and sold 2 properties in the last 5 year's, I didn't play games though. Here's what I can afford, here's what I'd like my net to be on sale. No b.s. involved
Yes, but that is YOU. Most people would rather deal with someone like YOU. Your bottom line is defined before you enter the market, you choose a direct approach and pursue the offers that will help you achieve your bottom line.
But there is no problem, ethically or otherwise, when a seller wants to consider more offers to net more in the end. As a buyer, all you can do is keep focus on what you will spend and not get upset when it isn't good enough for the seller. The tactics are only a means to an end, and bidding up in a sellers' market is kind of common.
Based on reviewing lots of solds in my area, bidding wars don’t usually result in significantly higher closing prices. I.E., listing a property at $150 when the comps are $175 doesn’t get you to $180. You’ll get a stack of $150k offers & maybe get one at $175.
Different markets = different results, but personally, if I think I can get more than the comps, I’ll list at that price & let the market tell me “no” if it doesn’t agree.
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