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Not always true. A buddy recently made a cash offer on a home. Two other offers were higher, but they were financing. Seller just wanted to be done with the sale of the house and accepted my buddy's cash offer. The seller said he knew the cash offer was good and the sale would close faster.
This is the only reason I was able to buy several properties.
One was tied up for 90 days with a city sponsored first time buyer program... by the time all the details had been worked out the city had exhausted the funds earmarked for the program... the seller was quite upset as she had relocated far away...
My agent called and said the home I had looked at was back on the market and the seller wants a non-contingent all cash sale...
I said I would be interested but the price would reflect a cash offer and be lower... she encouraged me to follow through.
I was able to buy at a 15% discount from the previous accepted offer... we closed in 14 days and I was thrilled and the seller sent me a note thanking me...
I was just told by a listing agent no one really gets the upper hand, highest offer wins. I'm confused because the listed house was not an auction so how could there be a bidding war?
Its simple. Many parties make offers before the seller accepts one. So, if you, me, and Dupree all make an offer on the house, the seller and listing agent are likely to evaluate the offers, and go back to the you, me and dupree, and tell us, "we have multiple offers, please make your final and best offers." I might offer another $4k. You might offer another $3K. Dupree might hold tight. The seller then examines the offers. He might forego my extra $1k for your cash offer. He might accept mine and take his chances on my financing.
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Originally Posted by ethnicappalachian
And for how long is this allowed? Til seller likes the price offered?
Until he accepts an offer. If he signs to accept your offer and someone comes in higher two days later, he can only accept it as a backup offer, meaning he has to at least sell it to you for the price agreed on and can only accept the backup if the other offer falls through.
Quote:
Originally Posted by ethnicappalachian
I was told by a listing agent it's not ethical to disclose the highest price offered so that way another buyer could counter the offer. Why is it ethical to start a bidding war to begin with when it's not an auction?
Do realtors make more when they get the buyer to offer more for the house? In other words the realtor is FOR the seller, not the buyer?
Yes. The commission is typically a percentage of a sales price. Although, at a $30K house its not going to really move the needle much. A difference in $1000 is a $30 difference for the realtor.
one realtor had asked me for my driver's license as well (leave last few digits of license # and cross out the rest for privacy) so I can go inside the house since it has a lock box and they'll give me the code to get in. Has anyone here ever done this?
The property is bank owned, so I would assume banks would rather take the cash and run, otherwise the house I've been inquiring about would have been off the market already (if someone actually offered cash for it).
Last edited by ethnicappalachian; 06-09-2017 at 03:25 PM..
one realtor had asked me for my driver's license as well (leave last few digits of license # and cross out the rest for privacy) so I can go inside the house since it has a lock box and they'll give me the code to get in. Has anyone here ever done this?
The property is bank owned, so I would assume banks would rather take the cash and run, otherwise the house I've been inquiring about would have been off the market already (if someone actually offered cash for it).
The realtor was being lazy. He should not be giving his access code out to buyers. I imagine he only did this because it was an unoccupied bank owned house and he trusted you.
Yep, typical and it's the equivalent of being "pre-approved". We had to prove that we had COH because we were buying a house before selling the home we were living in.
It depends on how well the realtor knows you. If he/she knows you well that you are financially capable, he/she will not ask for pre-approval letter from bank.
Depending on market, cash deals will not give you discount but usually put you ahead of other potential buyers. But even so, some buyers who can get 100% financing from bank is still hard to beat.
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