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I was going to put an offer in on a house this morning when my agent called to inform me that the seller's agent said they received an offer that was $25k above the list. I've never had this happen before and am surprised the agent told us this. Can I assume that this information is reliable?
I was going to put an offer in on a house this morning when my agent called to inform me that the seller's agent said they received an offer that was $25k above the list. I've never had this happen before and am surprised the agent told us this. Can I assume that this information is reliable?
With the seller's permission, the agent can disclose offers in an effort to get a better offer. It would not be in their best interest to lie about it, as it's likely to scare off other potential buyers. Has your agent reviewed the local market with you? Is there a lot of competition for homes? Was the list price competitive vs. comparable properties? If you are financing, will it appraise for the higher offer, or a higher offer that you may make?
You cannot assume anything. The agent might be trying to increase your potential bid and/or urgency by providing that information. It could be true or it could be exaggeratted. Only the agent's honesty and integrity can predict which is true.
I would lean toward it being more likely to be true than not as it might put you off making an offer if you believe you cannot beat the other buyer's bid. Unless there is in fact an acceptable offer on the table it could be a risky play to try to pressure your bid upwards with such a statement. It would be more common to keep the pressure generic with something like, "there has been a lot of interest and I expect a couple offers at any time." This would keep you in the dark about specifics and still let you know to bid as high as you think you should.
It is hard to say if the information is reliable, but maybe. It depends on the area you live, the community and the price range. If it is a popular area and homes are selling fast, it may be true. The concern is always for the appraisal, but many cash buyers are going nuts.
I have recently lost several contracts to buyers that were bidding what I thought were unrealistically high bids, but if they can close them and they are happy so be it. I would not have bid the price they are paying, but then again I did not get the bid. The market is rising rapidly here in Phoenix.
Talk to your agent and decide if you are willing pay more or wait for the next home.
I was going to put an offer in on a house this morning when my agent called to inform me that the seller's agent said they received an offer that was $25k above the list. I've never had this happen before and am surprised the agent told us this. Can I assume that this information is reliable?
Ask YOUR agent what they know of the listing agent, the property, the neighborhood, & the market, and whether the statement can be, in her judgment, assumed to be accurate.
Bear in mind that even if the offer is there, you know nothing about the other terms. Find out why they are shopping the offer. If the offer were a great one in all respects, would they not have just taken it? What about it does the seller NOT like. Perhaps you can make the seller happy with the other terms, and either get the property for less than the other offer or at least have an advantage over the other offer, if you end up in some sort competing offer situation.
My agent says the house is not worth the list price based on comps but the market supply of homes here is very low.
Everything is about supply and demand. If the supply of homes is "very low" like you state, then the house is still worth what someone is willing to pay for it with not allowing another buyer to buy it. Market demands what it demands.
Assume it's true...even though it could easily be a lie.
Does not matter.
Someone may offer more, but you might be a stronger buyer.
I would give them your best offer if you really want the house.
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