Strategy to combat multiple counter offer situations
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I had a listing once that was extremely hot (11 offers in the first two days), so we did a "highest and best by X date and time" solution. Got two of those escalator clause offers, from people who were from somewhere where they were common. As I recall, they just sort of annoyed the seller (your highest and best offer is the price above which you won't go, just make it simple, why don't you), but were included in the mix. Neither one got the house. There would, of course, have been the problem of proving what the highest offer was because of confidentiality reasons.
As buyers / sellers ... the truth is when the "agents" tell us there are other bids on the table... there is NO WAY we would know if the agents are telling the truth.
So... the advise for any involved in the buying or selling (NOT agents) is to go in with a very business like attitude (same as that of an agent who has seen many homes; and so nothing will phase them) and be as unattached to any place as possible.
And if the ball is not in your court (to your advantage) I will strongly recommend any people who holds the wallet to "walk"....
Like marriage, better to have a marriage one love & will continue to love than one jump in & be filled with "doubts" (if one paid too much; & then have to brain wash oneself into denial & "have to accept / adapt" = not a happi deal) & live w/ "what ifs".
We actually have walked away from a multi-offer bid to buy a house that supposedly is so "wanted" by buyers that since the sellers like us so much... is willing to hold off till our best & last came in (the same day they sniffed of our expressed interest).
I basically told the seller's agent we are interested but not that interested to give them our best so we will not be even interested to give offer & is moving unto the next better target... "go ahead & accept the offer you already have"... that home is on the market & haven't sold for a year... there is no "other offers" track records in the past accept to drop their sale prices. Guess what... they never did sell the place = no multiple offer. And we know from the way the listed price recording (how they re-list the price on the home) we were their one & only offer. They ended up renting out the place... and I think the seller didn't even know that their listing agent told us there is a multi-bid offer to max their profits from us... hence they lost him the deal.
The place we finally bought... has 2 "removal of list" (like after an offer is in.. agent remove the listing) 3 months prior to our offer... our offer being the 3rd (3rd removal of list). And if & should the listing have been on the same day / even the week (but really... any person will see what that chances are {a week = 25%, a month = 1/30}... get my gist?). No other offer never did clashed with ours into a multi-bid situation & we are probably known by the agents now (agents do talk & find out about the buyers & sellers... it is really their job to do so; so do not be surprised) in that neighbourhood (do not play game with them or we won't get their money). One more thing to add... the more removal of list, the more offers is on the place = gotto be a good place for a great price right??? We did score a great deal... and it is no lemon house either = move in ready, weather tested by Irene & Lee... yah, that house keeps on giving, its a beautiful marriage.
Really... if & when one think "deep" about it...
Who is the money "profiting" when it comes to a multi-bid.
You bite "that" bait... you are game!
Again *** there is NO WAY a normal seller / buyer can proof the agent is lying against their practiced code. Now if there is "provided" the way to proof it.... then the agents can start talking to me about the "proof" thing & moral codes / agents will morally be obligated to not play that game!
P.S. Above is my own experience at really scoring the deal & not overpaying.
Hyeyeats - you beat me to it. Very well summarized.
If I were a buyer in a multi-offer scenario, I would tell the listing agent to accept the other offer and just walk. I don't like games either.....
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
