Home Buying in 10708>Question Details

JB04090996, Home Buyer in White Plains, NY

Is it wise to offer higher than the listing price when giving the highest and best offer in a multiple bidding situation? Thank you.

Asked by JB04090996, White Plains, NY Sat Mar 24, 2012

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Answers

8
Only if you think the value is there, in which case, you'd be foolish not to.
0 votes Thank Flag Link Sat Mar 24, 2012
It is a good idea to look at the overall market, ,what are other homes selling for that are similar in size, condition and location. From an investment stand point, if it is the perfect house for you and you have to pay a little more for it, but plan to live in the house for several years, you will likely not lose.

In the final analysis, how much is It worth to you? Good luck!

Debby Frank
Keller Williams Realty
(914) 498-5443
debbyshomes@aol.com
http://www.westchesterbydebbyfrank.kwrealty.com
0 votes Thank Flag Link Sat Mar 24, 2012
I feel that clients and agents are at a disadvantage when they are in this situation.
In my area right now there have been several bidding wars. Coaching my clients is always difficult because I always feel they dont believe me 100%.
I always say you have to loose a bidding war to see how it really works. When you win you always feel you paid too much.
I once had a client that bid the asking and won. They then felt they bid to high and made me call to lower their bid by $5000 which I did, then they were no longer the winning bidder and were out. When we called back two days later to say OK we will now pay the asking price, it was too late, the sellers wouldn't go back to them. When it sold they saw it closed for $2000 under the asking price. Seeing is believing.
On the house they ultimately bought they bid what they felt they could afford and would not feel sorry loosing it if it went for more.
You should work with a buyers agent you trust and who is willing to advise you. Every situation is different an experienced buyers agent will know how to guide you.

Mindy Gerstein
Prudential Centennial Realty
914-600-6032
0 votes Thank Flag Link Sat Mar 24, 2012
First thing that you should do is have your Realtor do a Comparative Market Analysis (CMA) on the property (if they didn't do one before submitting your offer). Have them use SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3 months (6 months, at the most). This will give you current market value. You should always base your offer on current market value, not list price. That said, if your current offer is at current market value, you need to consider if you really want to pay over current market value (you will have to pay this in cash as your lender will only finance the current market value determined at appraisal). However, if you are using VA financing, your lender will not allow you to pay the difference between appraised value and offer price - all other types of financing will. If your current offer is below current market value, you may want to increase your offer up to current market value (or higher if you can pay cash for the difference between appraised value and your offer) if you qualify for the higher loan amount. Also, you need to decide how badly you want this house.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sat Mar 24, 2012
Highest and best is always tricky. There is no one answer to that question. You really have no idea what you are up against and how high offers will go. It's probably best to hire a buyers agent to help you determine what the most logical offer would be. Sometimes the highest offer is not the best offer. You may offer a lower price than a competitor, but if your terms (ie downpayment, contingencies, cash) are much better, the seller may go with you. Very subjective. Be careful and again, I strongly suggest you work with a buyer's agent if you haven't engaged one already.

Barbara O'Connell
Licensed Real Estate Salesperson NYS
Margot Bennett, Inc.
914-548-1628
0 votes Thank Flag Link Sat Mar 24, 2012
If you are thinking of writtig an offer above list preice, please do your homework. Have your agent run a market report for the area. Make sure you are not offering above the value for the area.

Are there still a lot of REO homes being sold in the area? REO properties sales for below market at times so the overall vaule of the area will be affected by them.

Remember if you are using a loan the property has to appraise at the right value.

If you write an offer above market, but it appraises for less or you willling to walk away or are you will to pay CASH for the difference?

Best of luck to you.

Kawain Payne, Realtor
KawaindPayne@gmail.com
0 votes Thank Flag Link Sat Mar 24, 2012
Thank you so much. I may have to consider the extra cause for the difference, as our previously accepted offer was higher than all the comps...
Flag Sat Mar 24, 2012
It's always a roll of the dice...truly! You can and it looks good, as does at least a 20% downpayment but you truly never know who will bid what. The terms are always important. An all CASH deal vs a mortgage even if a little lower is always better to most owners eyes.

If you would like help or should have any other questions, please feel fre to give me a call.

Thanking you in advance for your attention to this matter.

AnneMarie Encarnacao, SFR, REO
Century 21 Schneider Realty
914-774-2764
0 votes Thank Flag Link Sat Mar 24, 2012
Thank you. 50% is the minimum requirement, so I guest we might be competing with CASH.
Flag Sat Mar 24, 2012
Before you can answer this;
You need to know where the LISTING PRICE is in relation to the VALUE.

The days of stealing property with a Low Ball offer are gone.
Done waste your time if that's the case.

Make the kind of offer that you would want to see, if YOU were the Seller.
0 votes Thank Flag Link Sat Mar 24, 2012
The listing offer is reasonable and my offer was VERY close. my offer has been accepted. 2 days later, I was told they are looking for a highest and best offer among "more than one offer". I assume they are sorry for their listing price not high enough.
Flag Sat Mar 24, 2012
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