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.
The agent cannot tell you the amount of other bids, as that is confidential information. And to invite you to make a higher bid when the seller instructs you to do so, is following the instructions of the seller and is proper actions on the agents part. I had a very large mobile home park in a small town listed 300 miles from my office. I took it to a real estate marketing meeting wher my wife presented it to a 2,000 plus agents from all over USA and some forign countries as I had another property to present. My wife was my partner in this 1 man office where I handled the clients, and she did everything else (she was a broker, a real estate specialist para legal). We had over 20 proposals to take back to the seller. Two of them got into a bidding war as though the both lived 1,500 miles away were from that town and both were retiring there within3 years. Over next 3 weeks it was bid up $75,000 plus, which it closed at with 40% down and owner carried the financing. Smart move as less than 2 years later now worth more than he paid.A great cash flow for his retirement. If I had not handled the bidding war as I did I would not have done my job selling The park. That is the selling agent's duty, to best serve the seller's best interest.
That is what happened to you, caught in competition with other buyers. You had the option to bid higher or walk away. Your choice. It was only proper you be given the choice. With the right property, or in a hot market this goes on every day. On these threads in hot markets they call this a bidding war and they happen every day.
The agent cannot tell you the amount of other bids, as that is confidential information. And to invite you to make a higher bid when the seller instructs you to do so, is following the instructions of the seller and is proper actions on the agents part. I had a very large mobile home park in a small town listed 300 miles from my office. I took it to a real estate marketing meeting wher my wife presented it to a 2,000 plus agents from all over USA and some forign countries as I had another property to present. My wife was my partner in this 1 man office where I handled the clients, and she did everything else (she was a broker, a real estate specialist para legal). We had over 20 proposals to take back to the seller. Two of them got into a bidding war as though the both lived 1,500 miles away were from that town and both were retiring there within3 years. Over next 3 weeks it was bid up $75,000 plus, which it closed at with 40% down and owner carried the financing. Smart move as less than 2 years later now worth more than he paid.A great cash flow for his retirement. If I had not handled the bidding war as I did I would not have done my job selling The park. That is the selling agent's duty, to best serve the seller's best interest.
That is what happened to you, caught in competition with other buyers. You had the option to bid higher or walk away. Your choice. It was only proper you be given the choice. With the right property, or in a hot market this goes on every day. On these threads in hot markets they call this a bidding war and they happen every day.
Well I was told (after submitting my offer) that there was another bid for X amount with an escalation clause for X amount and did I want to offer more than that. My point is that I thought we all had a chance to make our offers and the seller would make his choice from them rather than use the offers to play us against each other to get even higher bids.
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.
Ahh, but seems it should be just fine and dandy to "engage" by taking the position of countering at the top price listed. Wouldn't it?
I personally think that competing offers is a major point of contention or it can be a smooth process if looked at the right way. Some of the price points here in my market will consistently bring 10+ competing offers on 1st day of listing. To counter this I try to be proactive and call the listing agent, ask them what's on the table and what it would take to get the sale. It never hurts to ask the selling side their thoughts, I'd say 50% of the time they'll spill the beans, which makes it easier to structure a deal that the seller would be in favor of. Another thing is to write a letter and submit it with your offer. Every seller wants to sell their home to the Cleaver 2.5 kids kinda family it seems and so if you put a little human touch with your offer, sometimes it can help. I've seen sellers that take a lower offer because they liked the people they were selling to.
I personally think that competing offers is a major point of contention or it can be a smooth process if looked at the right way. Some of the price points here in my market will consistently bring 10+ competing offers on 1st day of listing. To counter this I try to be proactive and call the listing agent, ask them what's on the table and what it would take to get the sale. It never hurts to ask the selling side their thoughts, I'd say 50% of the time they'll spill the beans, which makes it easier to structure a deal that the seller would be in favor of. Another thing is to write a letter and submit it with your offer. Every seller wants to sell their home to the Cleaver 2.5 kids kinda family it seems and so if you put a little human touch with your offer, sometimes it can help. I've seen sellers that take a lower offer because they liked the people they were selling to.
I never read those letters. I don't care one bit what they say.
There's 10% who never care, and 10% who always care, and 80% in the middle.
Yep....all depends greatly on the sellers.
A house that is clearly an investor-owned flip.....they couldn't care less. They only care about highest and best.
A house that a middle aged/elderly couple raised their family in and are now downsizing/relocating and have tons of memories?....The buyer's letter talking about how they are so excited to make their own memories and start their family in that house is going to pull at some heart-strings. So long as there's no picture of the buyers....definitely worth including.
A house that is clearly an investor-owned flip.....they couldn't care less. They only care about highest and best.
A house that a middle aged/elderly couple raised their family in and are now downsizing/relocating and have tons of memories?....The buyer's letter talking about how they are so excited to make their own memories and start their family in that house is going to pull at some heart-strings. So long as there's no picture of the buyers....definitely worth including.
i think a letter is not just about "soft" pulling of heart strings. Some buyers can be flaky and you never can really tell who will flake out but knowing the situation of the buyer can help the seller better understand the quality of the buyer. I think that a solid buyer well matched to the home can push themselves ahead if there is a lot of competition for the house.
A family with kids already in the local schools has a strong reason for buying in that area. Less likely to pull out. If the house is old and the buyer mentions that they have owned a similar age house. Well maybe they already know what to look out for and they believe it's in good condition. Then when the inspection happens, they are less likely to freak out when the report brings up "old house stuff". These are just examples and you never know but sometimes there are lots of clues as to what you can expect with the buyer.
Not an expert - just bought and sold lots of houses!
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.
