You finally found the home you love, your excited to write up an offer and then you are informed by your agent that there is another offer on the table. So now what? You are a little baffled as the house has been listed for months and now there’s another offer? Unfortunately this is more common than you think and I know many home buyers scratch their head in amazement when this happens. It is normal to think the listing agent is just saying that, and is just trying to get your offer higher, but that is not usually the case. Not that I haven’t come across a dishonest agent in my time, but the majority of Realtors I know DO have integrity!!
It still baffles me to this day why this happens. Usually this occurs when the listing price has recently been reduced, or perhaps the inventory is shrinking and now the home looks more attractive because there is less competition. Sometimes it is a seasonal thing, such as in Fountain Hills and other parts of the valley when we see more winter visitors come to town which occurs January through April. If a house was listed in October and now it is January, that might explain why there is more interest. This scenario just happened to my clients and it is the week before Christmas. The condo they were interested in has been on the market for 60 days. We made an offer quite a bit under asking price but comparable to recent sold properties and the seller wouldn’t even budge on the price. My buyers decided to increase their price and we got a bottom line number from the seller which was only a reduction of $5000 off asking price. My buyers were pondering and waited 3 days before they finally decided to counter on the price and lo and behold, another offer comes in. We were told by the listing agent that the other offer is being financed and my buyers are offering cash, so we are feeling a bit more confident. The seller decides he wants to work with us since it’s cash, but now he wants list price. Greed definitely takes over when multiple offers come into play and it is really not a fun time for anyone but the seller. My buyers are still interested, but instead of agreeing to the list price my buyers offer $3000 less. Hmm… not feeling it, and for some reason my intuition tells me this is not going to fly and what do ya know, the seller accepts the other offer.
What seller passes up cash for financing? The listing agent said the other offer was substantially more money and the seller would be leaving a lot of money on the table. Ok, I get it, but there are still obstacles to overcome with a financed offer, especially with the appraisal. My advice is when you see a place you like, DON”T WAIT! You never know when that other offer will come along. If you do happen to get into a multiple offer situation, get guidance from your agent as they have years of experience with these situations. Just remember, don’t try to over think it too much, offer a price you are comfortable with and make it your highest and best so you have no regrets. You never know what a seller will do. If you lose the house, you know you gave it your best shot. There will always be another place to call home!
I live and work in Fountain Hills and I absolutely love it! I would love to share my knowledge of this unique community and all it has to offer. Feel free to call or email me anytime to get more info about the place that I love to call home!
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