(Closed) What did/would you do when there were multiple offers on the house you want?

posted 5 years ago in Home
Post # 2
Member
2851 posts
Sugar bee

I have been in this situation several times.  It’s very common in our area for there to be multiple offers on a property.  Go in with your best and final (I’d recommend at least 5k over asking).  We did not want to go back and forth with the seller, so our offer had it written in that they had 24 hours to respond.  In a situation like that full asking will not get you the house.  However we weren’t willing to overpay so didn’t choose to go too far over asking.

Post # 3
Member
47439 posts
Honey Beekeeper
  • Wedding: November 1999

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bellanotte11:  There is no one answer. If the market is hot, then you usually have to make the best offer you can upfront- staying within your budget. Do not get carried away and bid more than you think the house is worth. There will always be other houses.

Make you offer as clean as you can. In our market, buyers are even taking their inspectors with them to the open house, so they don’t have to make the offer subject to inspection.

Sometimes it helps to look at it from the seller’s point of view. If you were the one selling, you would probably take the best offer. I know some people say those letters help to personalize the offer, but frankly, I would take the highest, cleanest offer and let the potential buyers deal with their own problems.

Post # 4
Member
2668 posts
Sugar bee
  • Wedding: December 2016

I live in Australia, so I’m not sure how relevant my experience will be to you. We put offers on 2 houses before we bought the one that we now live in.

The first house, we had to put our offer in by a certain date then the seller would look at them all and accept the one that they liked best (not necessarily based on price, also one settlement, etc). We were later told that our offer was the lowest (and we actually offered a little above the asking price). The house was advertised as “sale by set date”.

The second house, we put in our offer (under the asking price – it was definitely not worth what the seller wanted) and the real estate agent came back to us a day later saying that the seller was looking for more and would we consider re-offering. We asked how much more they wanted, the agent told us and we decided that we weren’t willing to pay that much with all the work we had to do. The seller then rejected our offer. The house was advertised as “private sale”.

The third house, we put in our offer the day we saw the house (we loved it and knew straightaway that we wanted it). The real estate agent contacted us the next evening to say that another offer had been made. He wasn’t able to tell us what the offer was, as according to how our agencies work an agent can only take an offer from one buyer to the seller (it would be a conflict of interest to have more than one). He gave us the option to increase our offer before he took it to the seller – we decided to add a few extra thousand, so went in the next day to sign the paperwork. Our offer was higher than the other, so the seller accepted it and we got the house. The house was advertised as “private sale”.

Here, it seems to depend on how the house is advertised and the individual real estate agencies as to how the offering process works. Sorry I couldn’t be of more help!

Post # 5
Member
2871 posts
Sugar bee
  • Wedding: May 2015

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bellanotte11: this is very common in my market, with homes going for $100k – $900k over asking. For tear downs / complete crap holes. 

You did well with the letter and pictures — friends of mine won their house with their letter, even though there was someone else who had a higher bid. The highest bid was a developer and the owner wanted the home to go to a young couple instead of a flipper. Also, my friends were all cash / no contingencies. 

Did you also agree to no-contingencies? In my market, there are a lot of cash buyers, so no seller needs to deal with any offers with contingencies. Cash or as good-as-cash.

Did you make the best offer within your budget? If you did, there’s nothing more you can do. 

 

Post # 7
Member
1977 posts
Buzzing bee
  • Wedding: October 2013

We were in this situation….we offered $30k over asking price (the market here is insane) and wrote a letter to the sellers. We saw a picture of their dogs in the house and have the same breed so we connected with them on that. We were up against one other offer (there were more offers but they were only considering ours and another) and our letter won them over. 

ETA- the apprasal did come in 10k lower then what we offered. Since we needed to finance that amount, the seller had to either walk away from our deal or adjust the sale price. Since we were about 10 days from closing and they wanted to close, they decided to adjust the sale price. So even if you offered over asking price, you may not end up paying that due to the apprasal. The bank will not finance a home for more then its ‘worth’.

Post # 8
Member
2673 posts
Sugar bee
  • Wedding: September 2014

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bellanotte11:  just be aware- sometimes homes are intentionally listed for below market rate in order to create a bidding war. During our home search I looked at one house, also an estate/probate sale, which was priced way below market rate. I fell hard in love with it. They wound up with over a dozen offers and the house eventually went for $400k over asking- ALL CASH. Determine what you can comfortably afford to spend on this house, and dont go over that #. I would not get sucked into a bidding war. 

Post # 9
Member
586 posts
Busy bee
  • Wedding: June 2016

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bellanotte11:  I’ve encountered this as the seller and the buyer.

As the seller, we had 4 offers and one couple sent in a letter. Two of the offers were above asking price, one was at, and one was below. We took the highest, cleanest offer (not asking for a bunch of stuff, no red flag contengencies, etc). The letter from the couple did not help at all, honestly it was a little cheesy and I found it to be over the top and off-putting – but we would have selected them had they been the highest offer regardless of the letter. I think the letter will only primarily make a difference if you have offered virtually the same amount as someone else or if you get lucky and the selller is sentimental :).

As a seller, there is not a lot of difference between a cash offer and a loan offer as long as the buyer’s credit is good. It doesn’t matter how you pay us, we are walking out of the closing with cash.

As the buyer, it was much more stressful. We live in a crazy market area – we bid asking price on the house and lost it to someone else. A couple of months later we were notified that their deal fell through and we had another opportunity to bid, but only 12 hours to do it. While my fiance was on the phone, I started googling – someone from the seller’s real estate office had posted the accepted price on the website for the house on accident prematurely. Luckily I had seen it, it was $40k more than we had offered originally. We didn’t want to take any chances and felt like the house was certianly worth that much, so we bid that and got it. I think over/under bidding is entirely local market dependent. I would look more at recent sales in the neighborhood and use that to try to predict a little what might happen here.

My mom has been a real estate agent for many years, there’s no solid way to predict what the other buyers are offering, so you shoulld just make an offer that you’re comfortable with. Usually, if there are a couple of high offers being considered, the seller may come back and ask everyone to make their “highest and best offer by close of business”. In most states a seller’s realtor can lose their license for telling a buyer’s realtor what the exact offers are from another bidder, but they can single out the top 2-3 bids and ask them to bid again (insinuating that you were all pretty close to one another). 

Post # 11
Member
218 posts
Helper bee

We live in TX, and fell in love with our house. The neighborhood we are in is hot! We knew there were going to be multiple bids, so to sweeten the pot we shortened the option period to 5 days to get the home inspection done as quickly as possible and offered $500 as our ernest money. We also removed any home warranty the seller would have to pay for the first year and only bid a little above asking price.

Post # 12
Member
11278 posts
Sugar Beekeeper
  • Wedding: City, State

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bellanotte11:  

What your agent means is that your lender won’t loan above the appraised value, irrespective of what you may be willing to pay.  The bank, not the seller, has the final word on how much you can spend.

 

Post # 13
Member
11278 posts
Sugar Beekeeper
  • Wedding: City, State

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bellanotte11:  

Also, your agent should be guiding you as to what a reasonable offer would be.  She can do a comparative market analysis & show you what similar homes are selling for in the area.

Post # 14
Member
1977 posts
Buzzing bee
  • Wedding: October 2013

Exactly what 

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sassy411:  said. The bank will not make a loan for more then the house is worth. So unless the seller wants to back out of the deal over the money and time that has already been invested, they are forced to lower the price. Or if the buyer has that money in cash but most buyers won’t pay more for a house then what it appraises at. I have never heard of anyone NOT lowering the price. If they did backout they’d have to relist, find new buyers, etc etc

Post # 15
Member
1254 posts
Bumble bee
  • Wedding: October 2016

I wanted a house and knew there was a competing bid. I made the offer as clean as possible (I did need financing) and went in 500 over asking in a neighborhood where lots of folks ask for closing assistance. I gave them 24 hours to answer or the offer expired. I got the house.

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