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Hi everybody. I've just submitted an offer on a foreclosure property that has been on the market for 3 days. My offer is 91.2% of the asking price.
My agent says that in his conversation with the listing agent this morning, the listing agent is also expecting an offer from someone else today.
My agent told me to get ready to resubmit my offer with my "best and final offer" - because we might get into a bidding war with the other party.
I am in Georgia and our condo market has been hit very, very hard with foreclosures and free-falling prices. There were only 2 closings in the month of February in this zip code (according to Melissa data)!
Is the listing agent lying to try to squeeze more money out of me?
Can they ask me for a "best offer" even though there are no other offers and pretend that there are other offers?
Every property I have ever made an offer on or was about to make an offer on, the listing agent always says, "oh yeah, I got another offer today too." Some of these "other offer" properties are still on the market months later (today).
If you pounced on this listing after only 3 days on the market, is is not possible that someone else is also interested?
Perhaps the property was positioned to create a tremendous perception of value and encourage a bidding war.
Listing agents are charged with the responsibility to encourage best offers. Creating the perception of a multiple bid situation in a tough market, is not however, a sound strategy, unless there is indeed another offer on the table. Not all buyers are willing to enter into a bidding war and as such, it is possible that the sole offer could be withdrawn.
Only you can decide if the condo is worth more, to you.
In Oregon one of our fiduciary duties is to be honest with the other party, so no it violates our fiduciary duties here.
I have seen some short sales and foreclosures here with a couple of offers so from my perspective if the foreclosure is a good deal then I am not surprised.
Sometimes bank start the price of the home really low in order to get multiple offers.
They have an ethical obligation to be honest, but not all realtors, like all lawyers or doctors or any other profession, are ethical. I have also seen and been in situations where we've been told there is another offer "expected" today or they were told they could expect offers. How do you know? You don't. As someone else said, you should only bid what you are comfortable with and what you can afford. Don't play the game. Give your best offer and if it's good enough, fine. If not, there is a reason you didn't get that house and a better one will come along. Case in point...look at all the people who got "outbid" in the bidding wars of 2006? Those are the lucky ones now. They didn't buy a price inflated house that is now worth 30-50% less than they paid for it. At the time, they were devastated they didn't get that house. Now? Not so much.
There are many unethical people out there and some are willing to be dishonest to get a sale. Be careful. Decide what the property is worth to you, offer that and let the chips fall where they may.
We seem to be in the same situation. Looking at a house last week that was on the market for 2 days. Put an offer in and heard back there is 2 or 3 others coming in. We will hopefully hear something today. We will have to counter, but we know what are limit is and won't go over.
I think a lot of times they tread the fine line that you are mentioning.
They are "expecting" other offers.
There has been "a flurry of activity."
etc.
If they told you that there were 4 other offers and there were not they would be lying.
Right now they are trying to scare you with forecasts of other offers (expecting a lot of high offers any minute).
I think that has happened with everything I've seen, and my agent always played into it to, trying to scare me as well, since a higher offer benefits her as much as it does the seller's agent . . .
If you absolutely have to have the place, then step up your offer. Otherwise, offer what you're comfortable with, sit back, and relax. If you don't get it, then that property sets the new price ceiling for that type of property in that area. Something else will always come along.
I visited a place the day after it was listed. The property was very busy. I offered what I feel the property is worth. I'm not getting into a bidding war in a declining market.
Thank you all for your responses and support. The truth is that this property is at the bottom of my price range and I could easily make a full price offer.
Unfortunately my buying agent knows this as well as he has been showing me properties for 4 months.
I just don't want to get suckered into it by unethical realtors.
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