Post # 1
So Darling Husband and I are looking for a house. We are pre-approved and have seen several houses. We found a house and it was great, little to no work needed. The list price is $104,900. We put an offer in of $99k w/ the seller paying $3500 closing costs on Friday (4/8). They countered with $102,900 seller taking closing costs on Saturday (4/9). We were going to accept today (4/10) but our realtor called and said that they got an offer last night at 11:30pm. They want us and the other people to put in our best offer and they will choose from the two. So we weighed our options and came up with another offer, but before we could even call our realtor back he called again to tell us (even tho she shouldn’t have said anything) the second offer was over asking price and they were going to just accept without any consideration to us but the sellers realtor said that they should see what our best offer was and consider both. At that point we decided to just walk away, there is no way that we are going to offer more than the listing price. Well our realtor said to put our offer on the table and at least let them consider it, so we agreed to that. The more we think about it the more I wonder if the other offer was a bogus offer to increase our offer. I mean it is a great house but the timing just seems weird to me. Thoughts?
Post # 3
Regardless of fishiness, how would you feel if you lost the house? Is it worth a couple more thousand to you? If so, I would just pay it. It’s not much money in the scheme of things. If you aren’t going to be heartbroken if you don’t get it then walk away.
Post # 4
@caitlanc I will feel pretty bad if we lose this house, but honestly it’s at the top of our price point. We can’t afford to go over the asking price plus pay the closing costs as well. Darling Husband and I have to be honest with ourselves with what we can afford and we can’t let emotions get in the way of that.
Post # 5
I agree with caitlanc. If you love the house, how much is it worth to you? If it’s worth the couple thousand, then increase your offer. Remember a couple thousand isn’t going to make much of a difference in your mortgage payment, so if you really want the place, it might be worth it. If you’re feeling that you don’t really want the house, then just walk away. Buying a home is so hard and stressful. We made offers on a couple homes before purchasing the home we live in now, and we did pay over asking price because of multiple offers. Good luck!
Post # 6
I’m sorry you’re having to deal with this! It’s hard to find a house you want and then even more stressful to go back and forth with offers like this. If it is arleady at the top of your budget perhaps it’s better to walk away and look for something else that is a better fit – maybe there’s something nicer out there that you will love more! Good luck!
Post # 7
There were multiple offers when we bought our house too. Maybe we could have paid less, but then we wouldn’t have the house. The value of a house is what people will pay, not the listing price. Some people list high, some people list low to encourage multiple offers.
Definitely stick within your budget though.
Post # 8
It’s totally legit and happens often. Technically their realtor should not have told yours what the other offer was though. It’s called “highest and best” and happens when there are multiple offers on the table sometimes. I had it happen to me 3 times in the course of finding a house. Also, this is how buying homes directly from HUD works.
They don’t, however, always choose the highest offer, depending on what the other conditions are. Maybe the other offer is higher, but they need to close in 15 days and the sellers can’t do that. Could be a million things.
Stick with your budget, give the best offer you can and remember: there are TONS of houses out there for sale right now. I’m sure one just as good or better will come along. That’s what happened to me and I’m SO glad I didn’t buy the first house (had a contract and everything, but inspection wasn’t so great).
Post # 9
Every situation is different, but I think it might be bogus. Maybe a few years ago before this economy a bidding war was common, but I think overall it happens much less now, as there aren’t tons of people buying houses, and not many are putting in offers over asking price, IMO.
FH and I just bought a house a few months ago. Our realtor called the selling realtor to tell him we planned to put in an offer and inquire if there had been any other interest from other buyers. He told her that “today someone else saw the house for the second time and said they were going to put in an offer early next week, so if you want it, you better put in your offer today and make it good”. The house had been on the market for like 9 months at this point, and FH and I were like “So no activity on the house for 9 months until the day we decide to put in an offer?”. We decided we didn’t believe it, and made an offer based on what we wanted to pay.And they accepted it.
And my mom bought a condo in August and the same thing happened. She was putting together an offer with her realtor and they selling realtor called to say that people viewed the condo today and were willing to pay cash, so again, her offer better be good, and maybe she might want to ask over list price and not ask for closing costs. My mom thought this was ridiculous, and decided she didn’t want it bad enough to ask over list price. She made an offer based on what she originally wanted to do, and lo and behold they accepted her offer.
I think selling realtors pull this a lot because really, there is no way to disprove there is other interest or other offers. They know buying a house is an emotional thing, and if people really want something, they will fight for it. Of course, it’s always possible there really IS another offer, but from my experiences I would be weary to trust it. I would go with my gut and stay within my budget and offer what I thought was fair. Hope you get the house!
Post # 10
This happened to us. We offered over the asking price plus asked for a portion of closing costs. The few thousand extra was worth it to us because we fell in love with the house.
Post # 11
I don’t think it is suspicious necessarily – they could be lying but bidding wars do happen especially if it is a nice house and priced right. That said – I would still stick to your budget but also assess how much your mortgage payment would really change if you offer and extra $1000 or two (because the change in your monthly payment will be minimal). Put in your best offer and see what happens. Maybe the other people (if they do exist) will put in a condition that the seller can’t or won’t meet. Then your offer could still be accepted, even if it is for less money. It never hurts to try.
Post # 12
Option A: The seller’s agent is ethical and there was another offer on the home.
Option B: The seller’s agent is not ethical and there was not another offer on the home.
Multiple offers do happen in times like this when a home is priced properly.
Post # 13
We recently had an offer on a house and were told that they wouldn’t be able to accept any other offers after they had sent us a counteroffer. Maybe the rules are different where you live.
The house we’re trying to buy right now (just started escrow) had multiple offers on it. We had offered $5K under list price and didn’t ask for help with closing and they countered with $1K over list price and some strange per diem costs if we went over a 35 day escrow. We didn’t “counter” but we offered an amendment to close escrow in 21 days because our mortgage broker is very super gungho and thinks she can do it even faster. They accepted our offer within hours of getting our amendment. It probably helps that we made an offer just days after it fell out of escrow with someone else.
Post # 14
OP: Any news from the realtor? Did you decide to counter again or walk away?
Depending on how long the house has been on the market, it could or could not be bogus. But it also depends on the housing conditions in the area. Has your realtor encountered multiple bids on other properties in the area?
And it also depends on if you can afford it. There is no point getting the perfect house if you feel stretched every month trying to make the mortgage.
That being said, when my Fiance and I were looking the first house we bid on ended up selling at $100K over asking price. And the buyers paid in cash. And we encountered several other homes with 10-20 bids. But the housing market (while prices have dipped) has always been very competitive in my area of Southern California.
Post # 15
That happens all.the.time here, so I wouldn’t see that suspicious at all.
All you could do is put a price up you won’t lose sleep over and won’t rip yourself apart about if you lose it. You might lose the opportunity to have more conditions of your offer though (like a home inspection) and to me I don’t think I could go with confidence into something like that. Tough spot!
Post # 16
I’m in the minority here and think that the second offer was bogus. With the Ohio real estate market the way it it, your story seems very unlikely. This same BS happened to my cousin while he was going through the home buying process – another offer comes in at the very last second, he walks away, house remains on the market because there was never another offer. Most real estate agents are as scummy as used car salesman and will do anything to make a buck nowadays. Anyways, with all that said, I really hope things work out for you 🙂 Good luck!