Include a letter when making an offer on a home? (Austin: transplants, houses)

[TexasHorseLady]

Originally Posted by FalconheadWest

I wasn't wanting to respond to this, and most other people didn't respond either because these aren't really used in Austin. Most brokerage's attorneys won't allow the language in the contract. The agent's say to "put your best foot forward with your highest and best" and then you submit an offer not at your highest, but at $X amount "but I'll actually go higher if someone else did". That's not your "highest and best offer". You can't say you'll offer one price, BUT THEN you'll actually pay $Y price.

Either put your best foot forward or don't play the game.

Agreed. And when they do pop up, most sellers see them as a game.

[Acuda]

You never know what will work. We bought our first house in Cedar Park from a couple who had lived in the home for 25+ years. I found out that they were both educators and I told our realtor to go down that road with them and their realtor. When they found out we are both in education, they decided to sell it to us instead of another couple- even though I think the other offer was just a bit higher.

[CarnivalGal]

Originally Posted by CoolerInTheShade

As noted in the referenced article: "There are several kinds of escalation clauses, but all involve an agreement to top the high bid on a home by a set amount of money — often $5,000, and sometimes more."

So what if more than one buyer submits an offer with an escalation clause?

[CarnivalGal]

Originally Posted by gpurcell

If I had a letter from someone talking about how they'd keep my house single-family (or even intact) I'd take a (somewhat) lower offer over an investor who planned to scrape it.

The key point here being, "talking about." Just because they tell you they aren't going to scrape it doesn't mean they aren't just telling you that to get the house (or a lower price) and then do it anyway. Or they may turn around and sell it in a year or two to someone else who will scrape it.

[TexasHorseLady]

Originally Posted by mm57553

So what if more than one buyer submits an offer with an escalation clause?

I've had that scenario a while back. Two buyers (out of 11 offers - both people from California where that was common at the time) had escalation clauses. Neither of them got the house because someone else was willing to go over their top prices and also was willing to not play games and do their highest and best offer when the seller instructed everyone to submit their highest and best by a particular day and time. His feeling was that someone who was willing to play games when making the offer was more likely to want to play games during negotiations and down the road, and he wanted a clean deal - and this wasn't his first rodeo, he'd bought and sold before.

[y7longhorn]

I appreciate the input, all. It's been a frustrating last year trying to find a home and getting more disheartened with every failed bid. Who the heck is doing all this $20k and over asking? Us regular folks are getting completely priced out of Austin.

[timtemtym]

My realtor friends out here in LA say that everyone now is writing a letter. There are professionals that consult on letters to make them extra endearing and even customized towards the seller's demographics. Pretty crazy, huh?? But out here in super competitive sellers markets it is standard.

[Tim_Barton]

Originally Posted by timtemtym

My realtor friends out here in LA say that everyone now is writing a letter. There are professionals that consult on letters to make them extra endearing and even customized towards the seller's demographics. Pretty crazy, huh?? But out here in super competitive sellers markets it is standard.

This is why I would never , ever trust a dang letter, why because its total BS!

So this is what I say : http://i.imgur.com/1sQKHId.gif

or if people cannot read the lips here: https://www.youtube.com/watch?v=mBS0OWGUidc

Either way, in about 2 weeks I will be putting one of my homes for sale on the market in Parkside @ Mayfield Ranch and if I get a letter, i'll write back and say " http://i.imgur.com/1sQKHId.gif "!!!!

[y7longhorn]

Well, all that being said, if anyone has a neighbor who is planning to put their Allandale/Rosedale home on the market, please do send me a message. We'll give you what the market will bear, just give us a chance FIRST. :P

[centralaustinite]

Originally Posted by y7longhorn

Well, all that being said, if anyone has a neighbor who is planning to put their Allandale/Rosedale home on the market, please do send me a message. We'll give you what the market will bear, just give us a chance FIRST. :P

This actually how it works in many neighbors, Barton Hills has been this way forever, parts of Hyde Park. Prime streets in Rosedale too.

Neighbors let neighbors know via neighborhood listserves or at the elementary school or by word of mouth that a home is going on the market -- or people see renovations or big landscaping cleanups underway and stop and knock and talk to the homeowner.

You need to find a realtor who lives in or specializes in the area you want, someone who does dozens of transactions in the area, these are the only who are attuned and clued-in to what is about to come on the market. There used to be realtor in that exact area who was in her high 70s, she knew all the widows in the Allandale/NW Hills area and when they wanted to sell. I think she has finally retired but there are definitely other realtors around who have the pulse of that area.

Make sure you have all your financing lined up and can act fast. Even before the current RE frenzy, Allandale and Rosedale could be tough areas to buy in, requiring dedication and patience.

good luck