bostonbubble.com

WilmingtonRenter · Joined: 02 Apr 2010 Posts: 1

We're looking at a property that is for sale by owner, and the owner is telling us that they have an offer at $XXX,XXX but are inviting us to beat it. I'd like to tell them that I have to see some credible evidence of this offer -- the original signed offer sheet. Of course I don't trust the seller to be totally honest, about either them having the offer at all, or the price they were offered. I have my reasons/experiences for this Smile

Any suggestions?

(If a licensed re agent were representing the seller, would it be legal for the agent to tell us what the offer is? I seem to recall that it would not be -- not that that matters in this for sale by owner situation I believe.)

john p · Joined: 10 Mar 2006 Posts: 1820

Forget about the other buyer and think about how much you think the house is worth in today's market. Unless the place is totally unique, I'd stay a bit removed and keep looking. Prices are often a reflection of the ratio of buyers to sellers, and certain homes do get multiple offers. Finding an opportunity that not only has a great house but a great situation isn't rare in today's market. A place would need to be an UNBELIEVEABLE DEAL, or be an unbelieveable place for me to even consider getting into a bidding war in today's market.

Kaidran · Joined: 17 Mar 2010 Posts: 289

Yes, run from bidding wars.

Assuming the seller is telling the truth he will take your offer to try to get the other buyer to beat that. This is how it works in England, though I thought it was illegal here.

balor123 · Joined: 08 Mar 2008 Posts: 1204

I've never understood why houses couldn't be sold by auction, especially when there are large numbers of buyers. Wouldn't that result in the most efficient price for both parties?

mpr · Joined: 06 Jun 2009 Posts: 344

I would certainly ask the owner if he can show you a copy of the signed
offer, and explain that this will help you to take it more seriously.
If they are being honest they should take no offence at this.

You're right that a FSBO makes this more complicated because a realtor
would be quite unlikely to lie about this for a variety of reasons.

I gather from your post that you haven't made an offer yet.
I think an owner would be less likely to lie about getting a counter
to an existing offer since this could make you walk away.

CC · Guest

You should think about how much the house is worth in today's market and how much you want to spend on that. Anyone can show you a copy of the signed offer anyway.

If he shows you the singed offer way much higher than what you thought, then what would you do? If you only offer slightly higher than the offer he shows you, I am sure the other buyer will do the same.

Bill K · Guest

I don't see why you need a copy of the offer. Are you suggesting that you are willing to pay more than the house is worth if someone else has made an offer that exceeds the amount you are willing to offer?

Just make your best offer and let the seller decide if he/she will accept or not.

mpr · Joined: 06 Jun 2009 Posts: 344

Not quite as simple as that.

No one is suggesting that the OP should pay more than what the
house is worth or more than the maximum they would pay absent
another offer. (Although even there another offer is some evidence
of the desirability of the house).

However the aim - presumably - is not to buy the house for the maximum
one is willing to pay but rather for the minimum the seller is willing to
accept.

Another offer probably changes that minimum.

Brian C · Joined: 13 Feb 2009 Posts: 98

Don't play that game with price. Make them consider other factors you might bring to the table. Solid financing, quick closing, don't have to sell another property, etc.