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Actually, sometimes it's real close, and the decision is harder than you might think, particularly when they know something about the buyers they will be disappointing.
...until the successful offeror comes back with demands for extensive repairs and/or thousands in closing costs and says, "We are paying a huge premium, and think this is reasonable."
As a listing agent, I am quite happy with one good offer from one reasonable qualified buyer.
One of my points and not sure it's been addressed here is the escalation clause. I assumed when putting in my offer that all of us were putting in our best and final offers for the seller to choose from and seller wouldn't be using them to pit us against each other to try and drive the price up even more. I thought we had the one chance to make our best offers.
Otherwise I would never have used the escalation clause. This is what seems unethical to me but maybe I just didn't understand the process (although my agent seemed to say she wouldn't have done it that way).
One of my points and not sure it's been addressed here is the escalation clause. I assumed when putting in my offer that all of us were putting in our best and final offers for the seller to choose from and seller wouldn't be using them to pit us against each other to try and drive the price up even more. I thought we had the one chance to make our best offers.
Otherwise I would never have used the escalation clause. This is what seems unethical to me but maybe I just didn't understand the process (although my agent seemed to say she wouldn't have done it that way).
If you were to bring my sellers an escalation clause, I might suggest they counter with your top limit, as you already have indicated that the property is worth that much to you.
Locally, I might advise they not engage, as the NC Real Estate Commission and NC Association of Realtors both recommend.
I guess what seemed unethical (or maybe I misunderstood) is that I assumed we were all giving our best offers for final consideration and didn't expect the LA to use those offers to manipulate us into raising them after they were submitted.
When it is the seller, that seems to think if he just holds out for a while, he will get an offer a lot above his asking price, there is nothing the sellers agent can do to make the seller accept your offer. So it is not unethical for this to be happening. Don't blame the LA as he is only allowed to do what the seller allows him to do, which in this case is sit back a few days and wait for the sellers to accept the best offer. Ethics has nothing to do with your offer being accepted or not being accepted.
Last edited by oldtrader; 09-23-2018 at 03:26 PM..
Actually the listing price was 4K over what an almost identical unit sold for a few months ago when market was a bit hotter. That unit had multiple offers and sold for about 8 or 9K over list. They stated they would review offers upon receipt but then didn't.
The seller is aware of this situation, and feels that he should be able to get a bidding war going on his property due to this previous sale. If the market has turned and this is not the current situation in your area, the seller is not accepting this, and thinks holding out he/she can get a bidding war going on his property.
When it is the seller, that seems to think if he just holds out for a while, he will get an offer a lot above his asking price, there is nothing the sellers agent can do to make the seller accept your offer. So it is not unethical for this to be happening. Don't blame the LA as he is only allowed to do what the seller allows him to do, which in this case is sit back a few days and wait for the sellers to accept the best offer. Ethics has nothing to do with your offer being accepted or not being accepted.
I realize the seller's agent can't make the seller accept my offer. My point is that I thought putting in offers with a highest/best offer and escalation clause meant that the seller would choose between those offers as they were given rather than using them to go back and try to get us to raise them further. Is that typical?
But you didn't walk away. You tried to play the game. Why are you mad at a decision you made?
I'm not mad at the decision I made. I put in an offer as did a couple of others and I thought our best offers would be looked at and a choice made amongst them as they stood. Instead I was told another had offered more and was asked by LA if I wanted to go higher. That's when it started to seem like game playing and I backed out.
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