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Old 04-21-2018, 04:48 PM
 
16,492 posts, read 17,513,441 times
Reputation: 23546

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Quote:
Originally Posted by photogal9 View Post
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.....
How can there not be a conflict? The agent showing you the house works for the listing agent.

Sorry but if you were selling and someone offered you 10/20,000 OVER your asking price because they had the cash to cover above the appraisal you’re gonna say no I can’t take the additional money? If you were selling you’re going to try and get as much as you can for your property. I know I would. So would pretty much any seller out there.

If I was selling I would want the most money I could get
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Old 04-21-2018, 05:36 PM
 
Location: Saint John, IN
10,638 posts, read 3,314,105 times
Reputation: 12748
Quote:
Originally Posted by Electrician4you View Post
How can there not be a conflict? The agent showing you the house works for the listing agent.

Sorry but if you were selling and someone offered you 10/20,000 OVER your asking price because they had the cash to cover above the appraisal youíre gonna say no I canít take the additional money? If you were selling youíre going to try and get as much as you can for your property. I know I would. So would pretty much any seller out there.

If I was selling I would want the most money I could get


This above!


Comps and appraisal don't mean anything if a cash buyer comes along. OP, you need to submit what you're comfortable with paying and if you don't get the property then find another one.
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Old 04-21-2018, 07:59 PM
 
Location: Denver CO
18,977 posts, read 10,040,378 times
Reputation: 27756
Quote:
Originally Posted by photogal9 View Post
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.
Waiving inspection alone won't make your offer the best one. Plus for all you know, other offers that were all cash and/or a higher net amount to the seller may have also waived that contingency.
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Old 04-21-2018, 10:01 PM
 
Location: midvalley Oregon and Eastside seattle area
2,911 posts, read 1,346,132 times
Reputation: 2424
You could say, with a escalating clause, $123 or +2 above highest competing bid, with 130 cap. Proof of bids,
I would only use an escalating clause only if you really want this place. Be sure that you have a cap that is reasonable for you.
We bid a condo that we really wanted as our retirement place. We did won at our cap, 22% over original Ask which was based on older but most recent local sales.
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Old 04-21-2018, 10:10 PM
 
Location: midvalley Oregon and Eastside seattle area
2,911 posts, read 1,346,132 times
Reputation: 2424
We recently sold property that had generated interest with a exploratory bids, but not conclusively. Latest comp was 20 miles away, 12 months old, and not close in to services, schools and city as is our property.
We ask for last and best offer. We got an increase and we came down in lieu of a conditional.
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Old 04-21-2018, 10:16 PM
 
Location: midvalley Oregon and Eastside seattle area
2,911 posts, read 1,346,132 times
Reputation: 2424
In both our experiences, we didn't think that the Ask was to incite a bidding war but as a way to discover supply-demand pricing. "Elasticity"
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Old 04-22-2018, 04:55 AM
 
595 posts, read 376,554 times
Reputation: 1021
Of course as a seller you want to net the most money, that goes without saying. However, if you're not a cash buyer, and possibly even if you are, I can't think of anyone who would willingly over pay for a property. Inciting a bidding war in a seller's market I feel is uncesary. This property would have sold regardless if it was listed at the current market value.. Creating a feeding frenzy was unnecessary and if more agents did or continue to do this, the market versus wage growth will not sustain and create a "bubble" in the housing market. The days of ninja loans are long gone, however, there are questionable loans already available.

I personally feel the listing agents tactic was unnecessary and shady for lack of better wording. The agent that showed me the property called yesterday afternoon and said it's looking like you'll need to bid at $XXXX but I don't know the number. I told them I didn't have another offer, it's hard to bid against unknowns, at least it is for me. YMV.

To clarify, the listing agent owns the brokerage firm, the agent that showed me the property works there. That is why I wrote in my original post " I assume there's no conflict of interest."

Last edited by photogal9; 04-22-2018 at 05:23 AM..
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Old 04-22-2018, 08:16 AM
 
Location: Loudon, TN
4,902 posts, read 4,215,871 times
Reputation: 16288
When there isn't much on the market in a particular (usually low end) price range, you're obviously in a seller's market and why shouldn't the seller be allowed to essentially auction off their property to the highest bidder? I know the comps may be lower, but there may not be recent comps and the tight market justifies asking for more than the last sale. It's the law of supply and demand. There's just way more demand for this type of property, and the buyers have to compete in that sort of situation.

I'm biased because we just sold a place for $20k over asking, but we set the price a bit low, because we wanted the traffic. Our price we wanted ($205k) was just a bit above a breaking point where people set their search engines ($200k). If we listed at $210k we would probably miss a lot of buyers who might set their search ceiling at $200k. So we set it at $199,999, knowing the comps from the past few months were at $205k and there was NOTHING else on the market that cheap. Our open house yielded 39 lookers, and 16 offers in one weekend. If we didn't do a highest and best, do you think we would have had that kind of interest? Or would we have gotten an offer or two in the first week and had to pick between those two and lose $20K?

Just be realistic with yourself in these situations and set your offer at what you can and are willing to pay. Include any "pluses" that you can throw into the deal, such as no contingencies, or flexibility in closing, or allowing a rent back if necessary to accommodate the seller's needs. As some have said, you can make up the difference between what it will appraise at versus your offer by supplementing your down payment with extra cash. Our winning bid was an escalating all cash offer that was to beat the next lower offer by $800 with a cap, also he included a note to state that he was a-ok with "as-is" and a fast close. One individual actually bid more than the winning bid's cap, but it was a financed offer and didn't have a bank guarantee, and she wanted 6-8 weeks to close. We wanted a quick close, so we took the escalating cash offer at a few thousand less. Sometimes time=money.
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Old 04-22-2018, 08:31 AM
 
Location: Saint John, IN
10,638 posts, read 3,314,105 times
Reputation: 12748
A friend of mine was looking for s condo last year and put a bid on one after being outbid on a few others. Hot market in the Chicagoland area. Found another and there were several other people interested do seller said hightest & best by Monday at 4pm. He went in &10k over and his was accepted. Then appraisal came in 10k under original asking ($20k under his contract). He was getting a loan so he had to come up with the $20k extra if he wanted the place as the owner said he still wasn’t budging and had back up offers ready if he backed out. The market was so hot he paid the extra.

Again, it’s all what one is willing to pay!
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Old 04-22-2018, 08:39 AM
 
15,824 posts, read 18,440,406 times
Reputation: 25609
Quote:
Originally Posted by photogal9 View Post
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.....
Well, you have to option not to make a higher offer.
But, why would any seller not try to get their best price? You are trying to get your best price.
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