JAO

Buying a house in a hot market - offers

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I recently sold my house and the closing is next week.  We have been looking for houses and with the market being so hot (not sure if it’s just by me or if it’s all over) it has been difficult.  There is no inventory right now so once something lists, it’s a race to get it and it’s all over list price.  I realize that this is a seller’s market.

With that being said if you were selling a house would you be insulted with an offer that included the following terms.  Assume right off the bat you make the highest and best offer you can which is $20,000 over list price.  In your offer you tell the seller that as part of accepting the offer they can’t show the house anymore and can’t entertain other offers and that you will withdraw your offer in 2 hours.  So they can get 20 above list or take a chance that they might have someone offer more. 

I’m just thinking of how to gain a slight edge to try and put the odds in my favor.  I’ve been going back and forth on this and I’m curious what people’s thoughts are.  Does anyone else have any ideas to try and gain an edge.... obviously offering more, but there is obviously a max price.

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15 mins ago, JAO said:

I recently sold my house and the closing is next week.  We have been looking for houses and with the market being so hot (not sure if it’s just by me or if it’s all over) it has been difficult.  There is no inventory right now so once something lists, it’s a race to get it and it’s all over list price.  I realize that this is a seller’s market.

With that being said if you were selling a house would you be insulted with an offer that included the following terms.  Assume right off the bat you make the highest and best offer you can which is $20,000 over list price.  In your offer you tell the seller that as part of accepting the offer they can’t show the house anymore and can’t entertain other offers and that you will withdraw your offer in 2 hours.  So they can get 20 above list or take a chance that they might have someone offer more. 

I’m just thinking of how to gain a slight edge to try and put the odds in my favor.  I’ve been going back and forth on this and I’m curious what people’s thoughts are.  Does anyone else have any ideas to try and gain an edge.... obviously offering more, but there is obviously a max price.

market sucks right now for buyers. My house sold in one weekend 10k over asking no inspections and 10+ offers.

It was very tough buying a house, settlement on my new house is tomorrow.. Look into escalation clauses so you may not have to pay the full price over asking. You can offer 5k over asking but your offer will increase if there is a higher offer.I also had a clause where i  waved the first $1,500 of repairs that may come up in inspection. You still get the inspections but the sellers get the piece of mind that you are not going to walk away the deal over a $100 issue. I also had my fiance write a letter to the seller.  Also let the sellers agent know you can be flexible if possible with closing date. There was an offer for 10k higher than mine but the sellers choose our offer because of the inspection clause and the flexibility i was able to provide. Im renting the house back to them for 2 weeks so they can close and move.

 

Good luck with your search

 

 

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21 mins ago, JAO said:

I recently sold my house and the closing is next week.  We have been looking for houses and with the market being so hot (not sure if it’s just by me or if it’s all over) it has been difficult.  There is no inventory right now so once something lists, it’s a race to get it and it’s all over list price.  I realize that this is a seller’s market.

With that being said if you were selling a house would you be insulted with an offer that included the following terms.  Assume right off the bat you make the highest and best offer you can which is $20,000 over list price.  In your offer you tell the seller that as part of accepting the offer they can’t show the house anymore and can’t entertain other offers and that you will withdraw your offer in 2 hours.  So they can get 20 above list or take a chance that they might have someone offer more. 

I’m just thinking of how to gain a slight edge to try and put the odds in my favor.  I’ve been going back and forth on this and I’m curious what people’s thoughts are.  Does anyone else have any ideas to try and gain an edge.... obviously offering more, but there is obviously a max price.

Escalation clause might be your best shot.

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Real estate is crazy all over right now.

We’ve been helping our sons search for homes from NYC to as far away as Orange County NY.

There are no bargains anywhere unless you have possible information on a property which may be sold privately and not get listed with a realtor. 
Sellers are looking for buyers with cash and it astounds us how many buyers have 500k or more, in cash, to make a purchase.

Many houses we’ve tracked have sold for considerably more than asking price.

Some have gone as much as 80k to 100k over asking and all for cash.
Nothing goes for less than asking. 

We’ve even seen houses sell without buyers ever setting foot into the place or arranging for an inspection before closing.

It’s insane.
I see nothing wrong with the terms you are seeking and the last thing you should worry about is insulting the seller. 
20k above asking is considerable incentive for the seller to agree to your terms.
Give it a shot.

Good luck!

 

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33 mins ago, JAO said:

st price.  I realize that this is a seller’s market.

With that being said if you were selling a house would you be insulted with an offer that included the following terms.  Assume right off the bat you make the highest and best offer you can which is $20,000 over list price.  In your offer you tell the seller that as part of accepting the offer they can’t show the house anymore and can’t entertain other offers and that you will withdraw your offer in 2 hours.  So they can get 20 above list or take a chance that they might have someone offer more. 

I’m just thinking of how to gain a slight edge to try and put the odds in my favor.  I’ve been going back and forth on this and I’m curious w

 

Bought my home about 16 months ago. It was really difficult. We got beat out quite a bit. I don't think that's a bad idea. May give you a slight edge. We also wrote a letter and by chance, we met the owners and hit it off with the them. It is insane what's going on right now.

Edited by joefishnj21

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2 mins ago, valentine said:

We’ve even seen houses sell without buyers ever setting foot into the place or arranging for an inspection before closing.

It’s insane.

 

 

The last offer we put in was at $20k over... the buyer wanted anyone putting in offers to agree not to make an issue with the inspection unless it was major, defined as greater than $5,000 per each item.  Then he starting adding and adding to his terms so we walked, and this was before attorney review.

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31 mins ago, JAO said:

I recently sold my house and the closing is next week.  We have been looking for houses and with the market being so hot (not sure if it’s just by me or if it’s all over) it has been difficult.  There is no inventory right now so once something lists, it’s a race to get it and it’s all over list price.  I realize that this is a seller’s market.

With that being said if you were selling a house would you be insulted with an offer that included the following terms.  Assume right off the bat you make the highest and best offer you can which is $20,000 over list price.  In your offer you tell the seller that as part of accepting the offer they can’t show the house anymore and can’t entertain other offers and that you will withdraw your offer in 2 hours.  So they can get 20 above list or take a chance that they might have someone offer more. 

I’m just thinking of how to gain a slight edge to try and put the odds in my favor.  I’ve been going back and forth on this and I’m curious what people’s thoughts are.  Does anyone else have any ideas to try and gain an edge.... obviously offering more, but there is obviously a max price.

It's been years since I sold my first house in Connecticut, when an offer was made I had 24 or 48 hours (don't remember which) to either accept or refuse the offer in writing, basicaly a contract. I had to sell to them at the price agreed upon  unless the bank turned them down for a loan. In that case the "contract" we signed becomes null and void.

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41 mins ago, JAO said:

I recently sold my house and the closing is next week.  We have been looking for houses and with the market being so hot (not sure if it’s just by me or if it’s all over) it has been difficult.  There is no inventory right now so once something lists, it’s a race to get it and it’s all over list price.  I realize that this is a seller’s market.

With that being said if you were selling a house would you be insulted with an offer that included the following terms.  Assume right off the bat you make the highest and best offer you can which is $20,000 over list price.  In your offer you tell the seller that as part of accepting the offer they can’t show the house anymore and can’t entertain other offers and that you will withdraw your offer in 2 hours.  So they can get 20 above list or take a chance that they might have someone offer more. 

I’m just thinking of how to gain a slight edge to try and put the odds in my favor.  I’ve been going back and forth on this and I’m curious what people’s thoughts are.  Does anyone else have any ideas to try and gain an edge.... obviously offering more, but there is obviously a max price.

not unreasonable but depends on the price range your looking

Nobody wants to be in the city now

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23 mins ago, odiemike86 said:

market sucks right now for buyers. My house sold in one weekend 10k over asking no inspections and 10+ offers.

It was very tough buying a house, settlement on my new house is tomorrow.. Look into escalation clauses so you may not have to pay the full price over asking. You can offer 5k over asking but your offer will increase if there is a higher offer.I also had a clause where i  waved the first $1,500 of repairs that may come up in inspection. You still get the inspections but the sellers get the piece of mind that you are not going to walk away the deal over a $100 issue. I also had my fiance write a letter to the seller.  Also let the sellers agent know you can be flexible if possible with closing date. There was an offer for 10k higher than mine but the sellers choose our offer because of the inspection clause and the flexibility i was able to provide. Im renting the house back to them for 2 weeks so they can close and move.

 

Good luck with your search

 

 

 

16 mins ago, joefishnj21 said:

 

Bought my home about 16 months ago. It was really difficult. We got beat out quite a bit. I don't think that's a bad idea. May give you a slight edge. We also wrote a letter and by chance, we met the owners and hit it off with the them. It is insane what's going on right now.

What are you guys saying in these letters?

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7 mins ago, JAO said:

 

What are you guys saying in these letters?

 

 

To the owners of *** ****** **,

 

My husband and I love your home. When we walked in we could envision ourselves living there and starting a family. We are first time home buyers and have worked very hard to be in this position. Unfortunately, this time last year a deal on a home fell through in the eleventh hour resulting in us losing the potential purchase. It was a frusturating time to say the least.

This past year, we have regrouped and put ourselves in an even stronger position to become homebuyers. We ask that you strongly consider our offer to purchase your beautiful home. This area is known for its great neighborhood and wonderful school system. We would love the opportunity to become part of the community. To own a home would be one of the greatest personal accomplishments of our lives.

Thank you for your consideration. All the best.

Name

 

All truthful. Look, it's a business. Probably half the offers we made looked at this letter and cracked up and threw it in the garbage. It's about dollars and cents..However, there are homeowners who want the future owners to be a good fit and might take 5k less if they like the prospective buyers. I look at it as a hail mary pass, but heck..it worked!! Best of luck to you. If you need a home inspector please p.m me if you are in NJ. My father in law is an inspector and is one of the best of the best.

 

 

 

 

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1 hour ago, JAO said:

I recently sold my house and the closing is next week.  We have been looking for houses and with the market being so hot (not sure if it’s just by me or if it’s all over) it has been difficult.  There is no inventory right now so once something lists, it’s a race to get it and it’s all over list price.  I realize that this is a seller’s market.

With that being said if you were selling a house would you be insulted with an offer that included the following terms.  Assume right off the bat you make the highest and best offer you can which is $20,000 over list price.  In your offer you tell the seller that as part of accepting the offer they can’t show the house anymore and can’t entertain other offers and that you will withdraw your offer in 2 hours.  So they can get 20 above list or take a chance that they might have someone offer more. 

I’m just thinking of how to gain a slight edge to try and put the odds in my favor.  I’ve been going back and forth on this and I’m curious what people’s thoughts are.  Does anyone else have any ideas to try and gain an edge.... obviously offering more, but there is obviously a max price.

If you want the house don't add any dumb contingency stuff like one where they can't show the house after an accepted offer.  It's a seller's market and the seller has no idea if you will back out or not.  

 

I would ask the seller's broker if they are doing a best and final.  If they are put your best offer in and hope for the best. The fewer contingencies, especially mortgage contingencies the better.

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8 mins ago, joefishnj21 said:

 

 

To the owners of *** ****** **,

 

 

 

My husband and I love your home. When we walked in we could envision ourselves living there and starting a family. We are first time home buyers and have worked very hard to be in this position. Unfortunately, this time last year a deal on a home fell through in the eleventh hour resulting in us losing the potential purchase. It was a frusturating time to say the least.

This past year, we have regrouped and put ourselves in an even stronger position to become homebuyers. We ask that you strongly consider our offer to purchase your beautiful home. This area is known for its great neighborhood and wonderful school system. We would love the opportunity to become part of the community. To own a home would be one of the greatest personal accomplishments of our lives.

 

Thank you for your consideration. All the best.

 

 

 

 

 

This is what that letter says to me - we are young and stretching our budget extremely thin in the hopes that we can buy your home which is above our budget.  We have about a 50/50 chance of qualifying for our mortgage. Please take pity on us.

 

Sellers only care about the money and ease of the transaction.

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2 mins ago, Cpalms said:

This is what that letter says to me - we are young and stretching our budget extremely thin in the hopes that we can buy your home which is above our budget.  We have about a 50/50 chance of qualifying for our mortgage. Please take pity on us.

 

Sellers only care about the money and ease of the transaction.

always the taverns ray of sunshine 

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1 min ago, Cpalms said:

This is what that letter says to me - we are young and stretching our budget extremely thin in the hopes that we can buy your home which is above our budget.  We have about a 50/50 chance of qualifying for our mortgage. Please take pity on us.

 

Sellers only care about the money and ease of the transaction.

Transaction was extremely easy. We more than qualified and had the full 20% to put down. So maybe don't assume. No need to be smarmy. I ain't that typical millenial. Was their a pity appeal. Sure, why not. It was reccomended by our realtor to do so and it worked out. Did it help, will never know, but it couldn't of hurt.

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