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I don't understand how the buyers in the forum you mention didn't sue for the sellers to fulfill the contract. An accepted offer is a contract - refusing to sell after signing it is a breach of contract and the sellers can be legally forced to perform. At the very least, besides getting the deposit back, I would sue for any expenses incurred such as the inspection and appraisal.
That's what some people asked. But in both cases, the sellers were in their 80s/90s and the buyers didn't want to deal with suing. I can see that but still, the amount of time wasted and the emotion involved, I can't imagine. So thankfully for us, we are renting a house for several years now and our landlord said no rush to leave. We are on a month to month basis. If these sellers back out, we aren't homeless. But they aren't much older than me so I won't feel bad causing a ruckus for breech of contract.
1. Blazing hot market.
2. Property sitting for 90 days.
3. Not "really" over priced.
4. Received 1 offer below asking.
5. No contingencies.
6. Sellers are trying to create a bidding war, with you as the stooge.
If this market was/is so hot, then what are all the other buyers seeing here, that you are not?
Waiving inspection?
I'd rescind the offer, pronto. In fact, make a new offer. 4% below list...
They accepted our offer literally within minutes of it expiring. So it's ours but I'm still annoyed. Inspection is next week. So we'll see how that goes.
I've been watching this listing all summer. It's a gorgeous house, great area and all. The house is kind of outdated inside. And the yard has places in it that are kind of treacherous. So I think anyone with kids ruled it out. But the spots can easily be fixed by a structural company or they need to be fenced. The yard is huge but then several spots drop off because it's built in a canyon. We don't have kids and we have a nice budget to update inside and fix the yard. Other than that, I don't know why it sat. But as much as I love it, I hate the way this offer went down. Had it expired, they were getting a lower offer.
I cannot believe the sellers let a good offer sit so their realtor can get his buyer's fee as well as sellers. I can't believe that's legal in California! This state regulates everything.
... the reason for the delay is that the seller's realtor knows the people who made the other offer. That offer was below asking and he wanted to give them a chance to come up in price to beat our offer because HE would make commission on both sides! ...
Many years ago we made an offer on a house I really wanted. It was new construction and sat on the market for a couple months with no apparent action and a couple of smallish price drops before we started looking. 'Coincidentally', another offer was presented the very same afternoon ours was. From the eventual buyer, an out of state relative of another agent from the same brokerage as the listing agent. I was (and still am) firmly convinced the buyer's agent was waiting for the price to drop again, and when somebody else finally showed interest he had to move forward. Probably nothing illegal... and likely happens quite a bit... but it smelled to me.
I live in Southern California. I'm witnessing the hottest market I've seen in my lifetime for sure. We have been outbid on several houses already.
We went to see a house that has been sitting for 90 days on the market. It was a little bit overpriced IMO. Not much but a little. It is beautiful but it does need some updating. The yard needs work as well. The day of the showing we are told that they got another offer that day. They haven't accepted it yet though. BUT it's for below asking price. Very understandable to offer a little low on a house sitting for 90 days.
So my husband and I said let's not play games. We offered them ABOVE asking price. The amount is actually 5% above asking. Solid loan with 40% down. No house on our end to sell. No contingencies. Not asking for anything. They can take all their appliances. Whatever.
We are told they are going back to the other offer to see if they will go higher. We are at almost 24 hours now.
I'm having second thoughts on having made an offer above asking on a house sitting for 90 days in this nutty market. I can understand asking if the other buyers will go higher. But what I don't get is why it is taking this long. Why would a seller want to "wait to hear" what another buyer will offer when you have a solid, clean offer above your asking price? I would never do this. I'm not a risk taker.
But I can see how deals fall apart. What if both buyers walk away?
All of the waiting is giving me second thoughts honestly. If we offered below asking, yes I can see waiting. But you get above asking offer you take it! That's how I think anyway.
Anyway tell me if I'm being unreasonable in thinking that the sellers are playing a risky game and it's honestly offensive at this point.
I was told by my realtor friend in another state that I'm a fool for paying above asking on a house that's sitting this long in this market.
Yes, you should be PO'd. Greedy agents/sellers delaying, delaying, delaying, playing games and waiting just to see if higher offers come in. I despise this new practice. If you want to sell the house via auction do that, but stop playing greedy games. Highly unethical. Take your money somewhere else.
Okay I got our answer.... I needed to share this with you all. So we got the house. They told us at the 11th hour when the offer was about to expire that they are accepting it.
the reason for the delay is that the seller's realtor knows the people who made the other offer. That offer was below asking and he wanted to give them a chance to come up in price to beat our offer because HE would make commission on both sides! I had no idea this was legal. It was definitely not legal in the other states I've lived for a realtor to represent both seller and buyer. Apparently it is in California
So the other buyers were trying to figure out their budget if they could come higher. And it took them 24 hours to figure out that they couldn't. In the seller's realtor's attempt to line his pocket with both seller and buyer, he almost cost his seller's a sale. And again...on a house that's been sitting for 90 days in a zip code where homes being sold the first weekend with bidding wars.
This is an example of a realtor who did NOT have his seller's best interest at heart. Because his seller got a damn good offer on the table yesterday. I can see asking the other buyers if they can come up. But give them a couple of hours to answer. Not 24 hours.
And our realtor said it would have gone longer but they had to call the seller's realtor and demand an answer before our offer expired! Well I wanted to update you all. At least we don't have to house hunt any more and we do love the house
The bottom line is the seller can chose to sell to whoever they want to. You have no idea if their realtor was pitching in part of their commission to allow the seller to walk away with the same amount as accepting your offer. It isn’t something to take personally.
I remember being angry when I lost a house where I was the highest bidder by quite a bit, paying cash, no contingencies. Why did I lose? Preference went to owner occupied bidders and I wasn’t going to be occupying it right away. Dumbest thing I ever heard but nothing I could have done differently except to have lied.
Now it’s in your hands to do you inspections and decide to take it or not.
1. Blazing hot market.
2. Property sitting for 90 days.
3. Not "really" over priced.
4. Received 1 offer below asking.
5. No contingencies.
6. Sellers are trying to create a bidding war, with you as the stooge.
If this market was/is so hot, then what are all the other buyers seeing here, that you are not?
Waiving inspection?
I'd rescind the offer, pronto. In fact, make a new offer. 4% below list...
Agree 100%.
The only houses sitting for 90 days in Southern California are overpriced, luxury properties, or out in the boonies.
I’d also want a discount for them wanting a 60 day escrow. Beat them down on the price before releasing your contingencies, or walk if they don’t budge. The market is cooling all throughout Southern California, and if it has sat this long I’d bet anything they’ll come down.
"The market is cooling all throughout Southern California" - in whose reality?!
This is from an article published two weeks ago:
In their mid-year forecast, the California Association of Realtors reported that existing home sales are running 34% higher than the previous year through the first half of this year. The statistic is surprising given that there are 37% fewer homes in the market this year than last year, said Jordan Levine, vice president and chief economists at the California Association of Realtors.
"That growth comes despite the fact that we're in very tight levels of inventory," Levine said during a video meeting of the association's mid-year forecast. "In fact, I would argue that we would be selling more homes up to this point but for the fact that we have so many buyers but not enough homes to put them in."
The California Association of Realtors mid-year forecast found that the median price of a home — the midpoint of all sales — in the state in June reached a record of $820,000. That's a 30% jump from the previous year.
The median days a home would be listed was eight days, 58% decrease year-to-year.
"Almost three-quarters of the homes closing is above asking price," Levine said. "It's just an incredibly competitive market due to that lack of inventory."
"The market is cooling all throughout Southern California" - in whose reality?!
This is from an article published two weeks ago:
In their mid-year forecast, the California Association of Realtors reported that existing home sales are running 34% higher than the previous year through the first half of this year. The statistic is surprising given that there are 37% fewer homes in the market this year than last year, said Jordan Levine, vice president and chief economists at the California Association of Realtors.
"That growth comes despite the fact that we're in very tight levels of inventory," Levine said during a video meeting of the association's mid-year forecast. "In fact, I would argue that we would be selling more homes up to this point but for the fact that we have so many buyers but not enough homes to put them in."
The California Association of Realtors mid-year forecast found that the median price of a home — the midpoint of all sales — in the state in June reached a record of $820,000. That's a 30% jump from the previous year.
The median days a home would be listed was eight days, 58% decrease year-to-year.
"Almost three-quarters of the homes closing is above asking price," Levine said. "It's just an incredibly competitive market due to that lack of inventory."
Uh, the reality of July’s numbers? Inventory is up, and sales are down. I have friends and family who are realtors in LA/IE and SD, and they’ve been saying this for a good month or so now.
I also never said it’s cooled off, but it’s cooling. Big difference. If you follow the market and can’t see this with your eyes I don’t know what to tell you?
I know nothing, BUT I do know that you need to, you must TRUST YOUR INTUITION.
If you feel like something is "off" then it most likely is.
If my house were on the market for 90 days I would not be farting around.
Have a Great Day!
Okay I got our answer.... I needed to share this with you all. So we got the house. They told us at the 11th hour when the offer was about to expire that they are accepting it.
the reason for the delay is that the seller's realtor knows the people who made the other offer. That offer was below asking and he wanted to give them a chance to come up in price to beat our offer because HE would make commission on both sides! I had no idea this was legal. It was definitely not legal in the other states I've lived for a realtor to represent both seller and buyer. Apparently it is in California
So the other buyers were trying to figure out their budget if they could come higher. And it took them 24 hours to figure out that they couldn't. In the seller's realtor's attempt to line his pocket with both seller and buyer, he almost cost his seller's a sale. And again...on a house that's been sitting for 90 days in a zip code where homes being sold the first weekend with bidding wars.
This is an example of a realtor who did NOT have his seller's best interest at heart. Because his seller got a damn good offer on the table yesterday. I can see asking the other buyers if they can come up. But give them a couple of hours to answer. Not 24 hours.
And our realtor said it would have gone longer but they had to call the seller's realtor and demand an answer before our offer expired! Well I wanted to update you all. At least we don't have to house hunt any more and we do love the house
That's why I don't do dual agency. Reminds me of the time the CEO of the pension consulting firm I worked for was accused of having a conflict of interest because we also had a trading desk in which he was involved. He said it was ok because "I have a Chinese firewall in my head'. lol
When I bought my house, the seller didn't list it and the seller's agent told me about the deal. I told her I wanted an agent for me and she offered me her husband or her managing broker. I chose the managing broker. I asked her what to offer and she surprised me by saying lower than ask. I was sure she would say go in at full ask. Our first offer was accepted. The value has increased by about 13% in two months. We met the seller and he said he would buy it back. (at the price we bought at no doubt).
Dual agency is for morons.
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