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Move to Denver and try that tactic.
You will be homeless.
I have absolutely no desire to move to Denver. And assuming I did I would sell here and leverage the offer position with a cash only offer. Under asking. Call me when the higher offer falls out of escrow.
When I was house shopping I never made one offer over asking. All offers I made were considered. In most cases i was accepted. Fell out usually due to inspection issues. In a few it was stupid leased solar panels
I would offer over list if the house was worth it by the numbers but never just to keep from "losing" the house in a multiple offer situation. I don't believe in that whole dream house concept. If I don't get it, move on to the next one which could work.
Over asking offers used to be rare in our metro area but this has changed in the last couple of years. When I put my house on the market at 4 pm on Thursday with showings allowed to start at noon the next day, I had three offers within two hours of it going on the market, all over list (from the photos only!). The second offer convinced us to take it off the market because it was $15k over asking, all cash, and no contingencies. Sold! Crazy part is that we priced it high because we were willing to push the comps since we saw this trend happening and our house was very updated and on point to the prevailing tastes of buyers.
It depends on the market. In a college town you have to bid over asking cause homes are snatched up so fast. Now we have bid on a home over the asking price . . . and .. . The homeowner of 40 years wanted children back in her home. So she went with another offer. You just don't know which way the wind will blow!
Received one, yes. Made one, no. But I wouldn't be opposed to it if I wanted to buy in a market where that was warranted. This is very common in Denver right now. Not as common an hour south in the Springs, but it depends on the house, as we're benefiting some from people priced out of the Denver market. A neighbor recently sold their parents house in a Denver burb, 78 showings in 1 weekend & 13 offers, it's the only option for those who want to be in that market. I can't even fathom 78 showings in 1 weekend.
Location: Foothills of Maryland Blue Ridge mountains
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We bought a home near Frederick, MD last year. If I remember correctly that is close to where you live or are looking.
We happily paid 10k over the asking price and had an escalation clause written into the offer to go 20k over listing price, in 5k increments. We knew there was another offer coming in. We wanted this house and we got it.
We'd done our homework. We recently retired, moved out of D.C. and absolutely wanted a one level home with some land and a view of the mountains we could grow old in. Most of those homes were built in the 40s-60s. There were few updated ranchers for sale. Actually, there were none except this one in this particular area at the time we were buying.
Homes around here do not appreciate at the same clip as they do in the city. We knew that, but we were willing to pay the price anyway and we may lose money in the deal though God willing we hope to be here for 20 years. We are content here.
One thing we did not compromise on.....we bought in an excellent school district. If we do have to sell suddenly, at least we have that going for us.
I think if you are purchasing as an investment property, then no, you do not want to get into an escalation battle, unless you are significantly below market. But in my case, where it was cheaper than renting a comparable property, it made perfect sense. Same with the family that wants the home for location and fit to their family. If they will be there for a period of time, then yes, much cheaper to pay above list than to settle for a lesser property that they would leave sooner than later.
Ditto here, 3 weeks ago an agent asked me if I'd like to place an offer on a house we looked at, I said no I'm not bidding, this isn't an auction.
I wanted to pay the asking price but the disclosure revealed bad roof, no furnace and blown water heater.
That has tended to be my response, too. And I have bought real estate in DC and NYC where "above asking price" is the norm. I have learned to walk away if the seller is only interested in inflating the price-- I have been in more than one situation where the house did not appraise at value because of the market. But then again, I like to buy properties before they are even listed. One avoids the bidding wars this way.
The buyer actually sets the price for a house. If the buyer expects to "compete" or "bid" then they do. This situation only benefits the seller.
In my recent co-op sale, I had several offers, most above asking price. I was already making a significant profit, so I selected the offer of the person who wrote a letter about why they wanted the unit, how much they loved the neighborhood AND had the best financials for the co-op board. This happened to be a full price offer with traditional financing and a significant down payment. I knew this buyer would pass muster with the board where as some of the other crazy bids had cleaned out their savings just with their over asking offer. But I realize that this type of sale is quite different than a SFH.
I always find it fascinating how so many people are only interested in buying overpriced homes so they can brag about buying "under list price."
And just as fascinating are the people who brag that they got the house for "X above asking and won out over 5 other offers." Not sure how either really matters.
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