I am an active buyer of real estate, most of the time single family homes that I buy to renovate and then resell. I consider myself knowledgeable about the process and don’t expect any special favors. Having said that I just don’t understand the process sometimes.
Example #1: I bid on a HUD property 3 times over a 12 month time period. I made the same bid the first two times. Each time the listing agent came back saying that it was a multiple bid situation, so come back with your highest and best offer. The first two times, I came back with the same offer. Each time was told I was outbid. OK, fine I moved on.
The property came on the market a 3rd time, same agent. This time my offer was $9,000 less than my original two offers, you guessed it, my offer was accepted. I just don’t get this thought process.
Example #2: Asking price of this property was $99,900. The property was a great buy, my offer was $116,000. The listing agent came back saying they accepted a higher offer, not sure what it was. Two months later, the listing agent came back asking if we would consider buying the property at what we had originally offered. Unfortunately, I had bought two other properties, so the answer was no.
The house went back on the market, again at $99,900. The property was on the market for 3 months and I was ready for another house and made another offer, this time $95,000 and my offer was accepted. I just don’t get it.
This article in the Niche Report discusses how to manage multiple offers. Click on the link for the full article:
By: Mark Shandrow
"As home inventory and interest rates remain low in many parts of the nation, consumer confidence in housing is beginning to return. This is particularly true in California where supply cannot meet the demand of new homebuyers and investors. It is not uncommon that reasonably priced listings receive a deluge of competing offers."