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jclee 09-05-2013 05:59 PM

Selling my House: "Milking" more money from multiple offer situations
 
I am selling my house, i just received about 4-5 offers on it, one offer beats out the rest by a good margin. Even though I know this, can i or should I (or is it ethical), still ask my realtor to ask for final and best offer from all those who offered on my house, knowing that I can "milk" a few more grand from the person who put in the best offer?

rossfingal 09-05-2013 06:19 PM

Take the best offer you can get!!!!
(Are you "milking" cows?!?)

jclee 09-05-2013 06:23 PM

Quote:

Originally Posted by rossfingal (Post 1238594)
Take the best offer you can get!!!!
(Are you "milking" cows?!?)

Yea, but it's a multiple offer situation

oh'mike 09-05-2013 06:24 PM

If your agent is worth a damn, she or he will know how to get the best money from the offers----

jclee 09-05-2013 06:26 PM

Quote:

Originally Posted by oh'mike (Post 1238599)
If your agent is worth a damn, she or he will know how to get the best money from the offers----

My agent is my 22 year old brother. I had no choice but to use him. Just received his license, still very inexperienced. I'm helping him with the process of selling this house.

oh'mike 09-05-2013 07:41 PM

I did say," worth a damn":laughing:

Does he have an experienced elder agent that you can confer with?

Have you engaged a real estate attourny yet?

You could use some sage advice from someone in your market.

jbfan 09-06-2013 06:47 AM

Nothing wrong with making a counteroffer to the other bidders.

Your agent should tell their agent that the offer is too low and let them decide what to do.

A good situation to be in for sure!

Live_Oak 09-06-2013 11:30 AM

A bigger issue may be financing. Banks are very conservative on their appraisals these days, and even if you have an offer above the asking price, the appraisal may not support that. What happens then is that the buyer has to have more money down to lower the amount that the bank will approve. If they don't have the money, they don't get the loan and you either have to lower the selling price or lose the buyer. So, a multiple offer situation doesn't always mean to automatically go with the highest offer and everything will be roses. Sometimes, the lower offer who is a cash sale is the better offer in the long run!

47_47 09-06-2013 02:13 PM

Quote:

Originally Posted by Live_Oak (Post 1238888)
A bigger issue may be financing. Banks are very conservative on their appraisals these days, and even if you have an offer above the asking price, the appraisal may not support that. What happens then is that the buyer has to have more money down to lower the amount that the bank will approve. If they don't have the money, they don't get the loan and you either have to lower the selling price or lose the buyer. So, a multiple offer situation doesn't always mean to automatically go with the highest offer and everything will be roses. Sometimes, the lower offer who is a cash sale is the better offer in the long run!

Good point about the appraisal to loan amount.

redman88 09-07-2013 12:11 PM

just glad the house house i just bought appraised for more then we offered for the house and was accepted by the seller. :)

eharri3 09-07-2013 03:57 PM

Put out counter offers. But here is where an experienced real estate agent comes in handy: You have to strike a balance when you do that. Make your number reasonable enough that they'll stay engaged and try to meet you part way, but not so silly that they'll walk. Just the same as the buyer who wants to offer below asking still has to make their offer reasonable enough not to be laughed off. Good real estate agents advise people on how best to play that game so they can get the most money possible without killing the deal due to hurt feelings. I'm guessing you're either in a really desirable home and/or in a region with a great housing market. In this market it would have to be one hell of a property for me to get into a bidding war over it. And if I didn't have a counter-offer to work with I would probably walk away.

I hope you don't outsmart your way out of a sale.

cleveman 09-07-2013 11:11 PM

I don't care for the "highest and best" step.

Why?

Because, as a bidder, you can't trust anyone. How do you even know they have multiple bids? It reminds me of the time when I was trying to buy a house and I made a verbal offer to the seller which I was prepared to make in writing. They said they had someone who was interested in the house and they would call them immediately and see if they wanted to put in an offer. I sat and waited to see what would happen. They apparently had the person on the telephone and said that they would match that offer and did I care to bid higher. That is when I left.

So, as a buyer, I have simply walked away from "highest and best" situations in the past.

On Thursday of last week I was trying to buy a house. The house was listed for x. The realtor told me that it would probably come to the "highest and best", because he expected multiple offers. But I could be included in the highest and best bidding if I made a verbal bid then. So I offered x-$2k, bank financed.

He sent me a bunch of paperwork and said that it had gone into multiple offers, "highest and best", and that I should submit a cash offer for my original offer amount (x-$2K) because that was the best bid so far. He sent an offer to purchase completed for that amount, cash.

I figured that the realtor either liked me to buy it, or he was screwing me. Either way, I was going to get the property or not get the property. So I filled out the offer and gave it to him. I told him that I thought it was a good offer because it was competitive and cash and he told me the other offers were all cash. Then he called me the next day and told me that they had accepted my offer.

What is the moral of the story?

The realtor should have never told me that my offer was the best so far, so don't increase it. He did nudge me towards a cash offer as well.

I bought the property for quite a bit less than market value, so I guess they just wanted to move it.

Whatever. Seemed like a screwy deal to me.


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