Strategies for making offers on home

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cchrissyy
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Re: Strategies for making offers on home

Post by cchrissyy »

so what did you do?

the questions are the same as they ever were.
do you really want this house?
what is it worth to you?
will you offer the price that will most likely get it?
will you offer the price where you get it only if it's "a deal"?

I have no opinion which path you should take on this specific property. only that this is a normal part of the buying process these days so try not to stress. and you can get this one, or not, depending on your goals.
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jplee3
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Re: Strategies for making offers on home

Post by jplee3 »

cchrissyy wrote: Fri Jul 23, 2021 2:34 pm so what did you do?

the questions are the same as they ever were.
do you really want this house?
what is it worth to you?
will you offer the price that will most likely get it?
will you offer the price where you get it only if it's "a deal"?

I have no opinion which path you should take on this specific property. only that this is a normal part of the buying process these days so try not to stress. and you can get this one, or not, depending on your goals.
We are going based off our realtor's suggestion. I do believe he has a pretty good grasp on things now that he has intensively "learned" the area for the past 6 months. It definitely won't be a "deal" either way but we're trying to make a salient offer (which is going to end up being $15k more than what the asking price is). Supposedly we're neck and neck with another buyer so it's really going to come down to who wanted it the most. It's kind of a crapshoot IMO
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jplee3
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Re: Strategies for making offers on home

Post by jplee3 »

cchrissyy wrote: Fri Jul 23, 2021 2:34 pm so what did you do?

the questions are the same as they ever were.
do you really want this house?
what is it worth to you?
will you offer the price that will most likely get it?
will you offer the price where you get it only if it's "a deal"?

I have no opinion which path you should take on this specific property. only that this is a normal part of the buying process these days so try not to stress. and you can get this one, or not, depending on your goals.
We are going based off our realtor's suggestion. I do believe he has a pretty good grasp on things now that he has intensively "learned" the area for the past 6 months. It definitely won't be a "deal" either way but we're trying to make a salient offer (which is going to end up being $15k more than what the asking price is + $3k escalation). Supposedly we're neck and neck with another buyer so it's really going to come down to who wants it the most. It's kind of a crapshoot IMO
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jplee3
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Re: Strategies for making offers on home

Post by jplee3 »

Supposedly there's another offer coming in hot at $100k over the ask price, so obviously intending to blow everyone else out of the water. The seller's agent was nice enough to ask our realtor if we'd be interested still [as far as entertaining our $5k escalation clause] and our realtor said "yes" to at least keep us in the game, as we always have the right to ultimately refuse (which we more than likely will if it's a legit offer, which it sounds like it is).

This is super frustrating...
jaqenhghar
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Joined: Sat Feb 22, 2020 2:24 pm

Re: Strategies for making offers on home

Post by jaqenhghar »

jplee3 wrote: Mon Jul 26, 2021 12:41 pm Supposedly there's another offer coming in hot at $100k over the ask price, so obviously intending to blow everyone else out of the water. The seller's agent was nice enough to ask our realtor if we'd be interested still [as far as entertaining our $5k escalation clause] and our realtor said "yes" to at least keep us in the game, as we always have the right to ultimately refuse (which we more than likely will if it's a legit offer, which it sounds like it is).

This is super frustrating...
OP, would you mind sharing what part of the country you're looking in? I'm hearing similar stories in certain parts while reading that the RE market in other cities are cooling down from this spring.
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jplee3
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Re: Strategies for making offers on home

Post by jplee3 »

jaqenhghar wrote: Mon Jul 26, 2021 1:26 pm
jplee3 wrote: Mon Jul 26, 2021 12:41 pm Supposedly there's another offer coming in hot at $100k over the ask price, so obviously intending to blow everyone else out of the water. The seller's agent was nice enough to ask our realtor if we'd be interested still [as far as entertaining our $5k escalation clause] and our realtor said "yes" to at least keep us in the game, as we always have the right to ultimately refuse (which we more than likely will if it's a legit offer, which it sounds like it is).

This is super frustrating...
OP, would you mind sharing what part of the country you're looking in? I'm hearing similar stories in certain parts while reading that the RE market in other cities are cooling down from this spring.

I'm in Southern California (Orange County). I too have heard that things are cooling off... definitely doesn't appear to be the case around where I am. If anything, it seems like it's getting worse and buyers are coming in at the last hour with these insane offers
presto987
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Re: Strategies for making offers on home

Post by presto987 »

Orange County did seem to be cooling off a bit, but it feels like inventory is getting very tight with not much new coming on the market -- which can cause things to reheat up.
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jplee3
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Re: Strategies for making offers on home

Post by jplee3 »

presto987 wrote: Mon Jul 26, 2021 1:32 pm Orange County did seem to be cooling off a bit, but it feels like inventory is getting very tight with not much new coming on the market -- which can cause things to reheat up.
Yea, I think there was definitely a slip dip in demand. On top of that, I thought I read that rates went back down again... very disheartening as I thought we had a really good chance at this.
BenjaminEsq
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Joined: Mon Jul 26, 2021 12:52 am

Re: Strategies for making offers on home

Post by BenjaminEsq »

jplee3 wrote: Fri Jul 23, 2021 12:04 pm BTW: We're now in a counteroffer battle with one other buyer. They're asking for highest and best offer. Not sure how much higher we want to go...ugh I hate these situations. This happened with the last place that we ultimately backed out on too
Welcome to 2021 my friend! the ultimate seller's market since 2007. You have a few options:
- play ball. figure out your best offer and cross your fingers.
- wait it out. the market will settle soon (hopefully?). if time is on your hands, use it.
- pass go and collect $200. save the money and keep looking. don't pander to the sellers.

You're in a tough spot but you ain't alone. Stay positive and keep focused. Good luck.
Building software for 🏡 homeowner's to manage their mortgage and home finances — DM me to learn more! 💰
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jplee3
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Re: Strategies for making offers on home

Post by jplee3 »

BenjaminEsq wrote: Mon Jul 26, 2021 1:44 pm
jplee3 wrote: Fri Jul 23, 2021 12:04 pm BTW: We're now in a counteroffer battle with one other buyer. They're asking for highest and best offer. Not sure how much higher we want to go...ugh I hate these situations. This happened with the last place that we ultimately backed out on too
Welcome to 2021 my friend! the ultimate seller's market since 2007. You have a few options:
- play ball. figure out your best offer and cross your fingers.
- wait it out. the market will settle soon (hopefully?). if time is on your hands, use it.
- pass go and collect $200. save the money and keep looking. don't pander to the sellers.

You're in a tough spot but you ain't alone. Stay positive and keep focused. Good luck.
The longer I live in this area, and as home prices keep going up and we keep losing out, the less I want to live here and the more I want to move to a MCOL/LCOL area. Of course, I don't know what those are like so I'd probably be in for some "shell shock" but it would probably be worth our overall sanity. I've been entertaining/contemplating a move to the PNW (Vancouver WA). We will keep looking I guess and see what else comes out around here. Perhaps things will settle down a bit more come Q4? That's my only hope at this point. I'm sick of renting our small apartment... but I don't really want to move to a slightly larger one because the demand for 3/2s or bigger is nuts - there's very very low availability for those especially in this area. I have a feeling there are bidding wars occurring on rentals too. Otherwise, I'm going to have to give much more serious thought to moving. Living in CA has just become less and less viable over time... biggest downside/adjustment we'd be making is moving away from family. Our family ties are very strong here, so it would be difficult picking up to move just like that.

BTW: how do you figure this to be the "ultimate seller's market since 2007?" you mean since 2017? LOL, 2008-2012 we could have landed some nice deals which probably would funded the ability to make insane bids over asking most of our competition is making.
BenjaminEsq
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Joined: Mon Jul 26, 2021 12:52 am

Re: Strategies for making offers on home

Post by BenjaminEsq »

jplee3 wrote: Fri Jul 23, 2021 12:04 pm BTW: how do you figure this to be the "ultimate seller's market since 2007?" you mean since 2017? LOL, 2008-2012 we could have landed some nice deals which probably would funded the ability to make insane bids over asking most of our competition is making.
yes 2017 started seeing inventory fall and prices move up... but if you were around in 2007, it makes that look like child play. To get a sense of what it was like, watch this movie: https://www.youtube.com/watch?v=vgqG3ITMv1Q

Folks were buying multiple homes at a time, refi'ing immediately after buying, no paper loans were the norm. It was wild.

ps - if you like that film, try this next: https://www.youtube.com/watch?v=fXQ5VfBTNpg
Building software for 🏡 homeowner's to manage their mortgage and home finances — DM me to learn more! 💰
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jplee3
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Joined: Thu Nov 13, 2014 8:15 pm

Re: Strategies for making offers on home

Post by jplee3 »

Oh yea, I was mostly naïve and not paying attention to anything going on around that time but yea I know people who lost their homes after buying what they couldn't afford and then having to short sell it. I also remember looking out the window at one of my last jobs, seeing a huge fancy schmancy apartment/condo housing project being built-up with grand plans to make it the next big thing in the area, only to watch construction halt... for months that became years.

Everybody keeps saying "but this time it's different" - so yea I see what you mean about it being a sellers market pre-2008 and 2009 haha.
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