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So, my wife and I recently started house hunting. Trying to find a place that is a bit bigger, newer, nicer, etc. We found a house yesterday that was in absolutely stellar condition, great area, and in our price range. The home has only been on the market two months. Apparently the family that owns the home is moving overseas, so they seem motivated to sell.
Anyway, we ended up submitting an offer. Today the seller's realtor called our realtor and said another offer had been submitted. It was insinuated we should up our offer (we had offered $20K below asking, but exactly at assessed value on the house). Anyone else been in a similar situation? We figured we would probably end up being countered anyway, but I just hate the fact that it now seems like "games" might be played. I don't think the other realtor is lying, it's just frustrating to have stuff like this come up.
Well, you never know if there is indeed a second offer or not. It happens more often than you think it does especially if the property is priced to sell.
I have had multiple offers representing the Seller and the Buyer before. When I was representing the Seller, I had two very close offers when the 2 Buyers submitted their final and best offer. My Sellers asked me, what I thought was the best question ever. Which of the 2 potential Buyers would be least amount of drama for them
IMO, you just have to submit your final and best offer and just be okay with whatever you submit/offer.
We figured we would probably end up being countered anyway, but I just hate the fact that it now seems like "games" might be played. I don't think the other realtor is lying, it's just frustrating to have stuff like this come up.
Like playing poker... you can only play YOUR cards.
You have a fair number. <-right?
You have a minimum of contingencies. <-right?
Let it ride.
Yes, the tax assessed value. Recent comps are tough. There isn't much inventory in the price range we're looking at right now, either.
We've decided to go ahead and up our offer another ten grand. If it doesn't work out, then we figure it isn't meant to be.
You don't know if your offer is rejected or not, so why do you think about submit another offer up to 10K? Wait and see if the seller wants to counter your offer, then go to the next step....
If they already accepted the other offer (if it's true) so you'd better look for another house.
Sometimes, even your offer is lower, but it's clean, that means you don't ask the seller has to fix this and that etc... and it's quick close, so it might be accepted.
...
We've decided to go ahead and up our offer another ten grand. If it doesn't work out, then we figure it isn't meant to be.
This sounds prudent. I always advise buyers in this situation from a standpoint of "disappointment avoidance". In other words, if you lose the house to a higher offer, how disappointed will you be? Will you kick yourself and say "damnit, we should have raised our offer"?! Or will you shrug it off, "no biggie". If disappointment would be low, you hold fast as-is. If it would be high, you jump up.
It's also a function of the type of property, availability of similar competing homes, your time frame and how close a match the home is to what you want.
If you are under no time constraints and there are ample candidate properties to choose from, you're positioned nicely to make aggressive offers and bide your time waiting to find the right motivation level in a seller. If you're in a hurry and this house is the "one and only" that currently fits your needs, you might want to make your offer more competitive.
Finally, your agent should be selling the other agent and sellers on the non-financial benefits of your offer and you as buyers. If you're experienced buyers, well qualified with reasonable expectations about inspection repairs, that's a selling point to be used in a cover letter. If the other offer is higher, but with lower downpayment and first time buyers, that's a riskier offer for the seller and their agent should help them understand your value in comparison.
Good luck,
Steve
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