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My first recommendation is get a buyer's agent that is not tied to the seller's agent. It creates a COI and the potential to have you pay for things that you should not including paying over asking price, waiving inspections, etc.
I did not continue in the bidding war, as stated in a previous post. It is under contract now and from what I was told, the seller wanted a close date of June 8th.
Once it closes, I will come back (if I remember to) and list what it sold for.
The point of this post was a low list price was not needed, not in this market area. Listing it at $128K-$132K would have garnered a lot of showings and offer's. Listing low, IMO, wasted time for first time home buyer's who did not stand a chance any way(I am not a first time home buyer).
As a betting women, my #'s on $132K as a sold price, which would be a fair sold price. We'll see.
OP-they incite a bidding war to get the most money possible. Pretty simple question to answer there. Did you really need to be told or was it rhetorical?
To your last post - if it sold for 132k like you believe that doesn't seem outrageous with a 122k starting price and I'd think many first time buyers could swing that.
Quote:
Originally Posted by Diana Holbrook
No one likes these 'highest and best' bidding situations where you can't even really see what your competition is.
Correction, sellers and listing agents like it.
Quote:
Originally Posted by Diana Holbrook
Hard for us to advise, really.... we're not there, we haven't seen the condo or the comps, and you don't say how much you've already bid up, but I would search long and hard within yourself and decide what your 'highest and best' is, and if you've already made that offer, and won't feel bad if you lose it for a dollar more, then let it go, see what happens.
Agreed. Make your best offer so if you get outbid you don't care since you made your best offer.
It was rhetorical. I have explained why I believe it was an unnecessary tactic in this market. There's a saying, "say what you mean, mean what you say".... I hold that to be true in real estate as well. Some get caught up in the game, some don't.
For the selling agent, they get to say to the next seller they list a property for, "I got them $10K over ask!" Any educated buyer in my market knows the comp's, what is out there for sale, etc... He effectively got the seller market value and nothing else "if" the selling price is what I believe it to be. IMO, it's a sleazy way to do business, to each their own.
Now, if it sold for $145K, I'll eat my words, though I highly doubt it.
It was rhetorical. I have explained why I believe it was an unnecessary tactic in this market. There's a saying, "say what you mean, mean what you say".... I hold that to be true in real estate as well. Some get caught up in the game, some don't.
For the selling agent, they get to say to the next seller they list a property for, "I got them $10K over ask!" Any educated buyer in my market knows the comp's, what is out there for sale, etc... He effectively got the seller market value and nothing else "if" the selling price is what I believe it to be. IMO, it's a sleazy way to do business, to each their own.
Now, if it sold for $145K, I'll eat my words, though I highly doubt it.
Maybe...starting low and getting multiple offers will certainly create a faster sale.
what was the market value of this condo, in your mind? You've told us 110-128K ... how much below $128K should it have been? And why would it sell above the comps?
If your entire topic is purely a rhetorical rant because you didn't get a house you made an offer, OK. Is it asking too much to make that clear in the first post?
Over paying to me means, buying something over it's value which is supported by recent sold comps, period. I wouldn't and will never be the buyer paying $10K over list, then in 2-3 year's the market tanks again and I'm underwater. I always buy with the intent to sell and make money, not lose money. It's worked thus far, and I'll continue to do the same. I can be patient, there will be another property.
That's your prerogative to not pay more than list or appraisal and I probably wouldn't either; however, others might not mind if it's the perfect house in the perfect area for them. Most people buy with the intent to stay for many years, not to buy short term as an investment and sell in a few years. So, the house and location might mean more to them.
As I stated earlier that was the case with my friend who paid $10k over appraisal. He had been looking for a long time and was also outbid many times. He found the perfect condo, in the perfect area and plans on being there many years. He doesn't see it as a loss because even if the market tanks he won't be selling anytime soon. You only actually lose money if you sell at the wrong time. If he stays 20 years or more the market can change for the bad and good several times over the years.
As far as listing low is concerned, some people do it not for the purpose of starting a bidding war to increase the sales price, but some might just need to sell right away due to a job transfer, etc. so they list low, sell quick and move on.
the value is 110-128K- Those where the sold comp's.
the asking price was $122,900- Yes.
based on the condition you report, we can assume the value of this unit is < $128K.- Yes, very good.
you've increased your initial offer by $3,000- Yes.
We don't know what your initial offer is. Without being specific, is your new offer above $123K, or not? -Yes.
Can you agree that $122,900 is ~4% off FULL market value?- Yes.
How is 4% underpriced a "low list price to incite a bidding war"? - Based on condition and current market trend.
If numerous of these condos sell, and crappy ones sell for $110K while glammed out ones sell for $128K....and this one was glammed out but asking just $110K .... then maybe you're establishing your case. otherwise, not.- They are all cookie cutter units, glammed out by no means.
And I'm perplexed how you've bought and sold 2 x in 5 years (and this must be the 3rd) but don't know whether the name you called off the sign that works at the same brokerage is a conflict of interest or not. Certainly, you signed some agency docs, which included dual agency.
Hi BoBromhal,
Since you seem to be riding my a$$ for some reason, I'll take a moment and reply to this post to me from you the other day, then I will answer the other if I feel like it. See bolded above.
Regarding the last paragraph, why are YOU perplexed as to my real estate purchases & sales over the last 5 year's or so? That is a rhetorical question as your perplexity is not of my concern.
why didn't you offer $131K? - I didn't LOVE it and could see it requiring some interior plumbing work and tile work in the main bath. Flooring was blah, it was a basic unit other than having SS appliances, about 5 year's old and that isn't a draw for me, personally.
what was the market value of this condo, in your mind? You've told us 110-128K ... how much below $128K should it have been? And why would it sell above the comps? - The market value IMO after seeing it, $125K- $128K. It may have sold above comp's as it was listed below current market trends at $122,900K.
If your entire topic is purely a rhetorical rant because you didn't get a house you made an offer, OK. Is it asking too much to make that clear in the first post?
This isn't a rant because I chose not to continue in a bidding war, it isn't a rant at all, think what you will as it really does not matter. The whole process escalated like this:
1) It listed on Thursday morning at 11:00 or just about
2) I viewed it Thursday at 12:30 and submitted an offer within an hour
3) By 3:00 pm, the agent that showed me the unit said they are taking highest & best and deciding by Sunday @ 5:00 pm. How that came in to factor within hour's of listing the property (and here, in my area, agents will note on the MLS "Highest and Best by XXXXXX date/time, multiple offers received" this language never hit the MLS? Conclusion- the listed it under current market price to incite a bidding war in a seller's market. I have already written why I feel it was unnecessary and sleazy (my opinion), you need not agree.
See bolded above.
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