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This is very common in the Boston market right now. There are many reasons that the other offer could have been accepted so it's hard to say why they didn't come back to you.
Honestly, because the Boston market is so crazy right now you probably don't have much of a chance at this property. As much as you like it please try to remember that another one will come along that you love.
The buyers who are having success in this market are doing the following:
- putting there best offer forward first
- being flexible on the closing date
- being flexible on the inspection contingency
- getting preapproved well in advance of an offer AND having a strong preapproval letter from a mortgage lender or bank that the seller and seller's agent trust.
Please feel free to contact me if you would like any help with your preapproval. We also can talk to the seller agent for you to tell them how great a buyer you are.
617-456-1700 ext 115
Not all agents ask for a best and final offer. You went in over asking, but only 1,000.. I have seen multiple bid situations end in 25 to 30,000 over asking or more. That would be a case where a broker would not need to do best and final. Of course this all depends on the property many are underpriced to begin with purposely in order to create a frenzy of offers...
Just make sure you have an experienced agent...They should have a good sense of how a property is priced and be able to advise accordingly.
Good luck next time! I am sorry you are so disappointed!
The seller has the right to make a decision on which offer they want to work with and which they would like to accept. Sometimes there is no logic to this and sometimes it boils down to more things than money. Offers are comprised of many facets.
3.) Paperwork (meaning is it complete, in order and legible)
There is not much you can do if an offer is already accepted besides make a formal backup offer and stay in constant contact with the seller's agent.
Best of luck.
What I will say is that I've experienced this with clients many times in the past and, more often than not, they end up buying a home they like as much, or more. It may take some time, because inventory is low, but sooner or later it'll work out.
Very often in a rising market newly listed homes already have an out of date asking price. It's important to have your agent review pending sales and time on market, and find out as best they can how many offers were made on comparable properties recently. If 15 offers were made on a similar house a week ago, chances are 14 of those people would make an offer on the next one. This means that the list price is probably too low relative to recent pending sales.
It's hard to completely ignore the list price but, increasingly, it's something that must be done if you want to make an offer that has a chance of being accepted. Do be careful, though, to only offer what you can comfortably afford to pay. It's no use being the winning offer if you end up house poor and regretful of your decision.
Good luck in your search!
to your offer being passed on.
The current market allows owners to take action as they see fit.
With the housing inventory being low, sellers can take actions that they
have not done in the past.
Speed of the process, buyers sometimes including skipping inspections, and offers well over asking can be some of the more annoying.
Be careful not to get trapped in a situation where a seller or their broker starts lower than the value in an attempt to create bidding war.
The market is very heated right now. Many properties - and NOT properties "priced low" are getting multiple offers. It's not uncommon *at all* for there to be 10 or 20 offers or more. It's very challenging for buyers and buyer agents. Prices are going up right now well beyond what prior sales data suggests.
A few things to consider - you may lose a few more, you might want to look a bit lower in the price range so you have room to pay more, talk to your agent about escalation clauses, be prepared to go for it when you find the place you really, really want.
Good luck! It's stressful but you'll get there.
Second, why didn't your agent suggest an escalation clause--a clause that would have automatically raised your offer up to that $15,000 level, based on offers from other people? Next time, consider including an escalation clause.
Third, why did your agent allow you to believe that the seller would ask you for a "best and final"? Next time, assume that there won't be that opportunity.
Fourth, the listing agent is under no obligation to reveal any details of the successful offer.
Fifth, your only option is to try to put in a backup offer. If the initial offer falls through, then you might have a chance.
Hope that helps.
However, if you do this, you may be taken for a ride.
Your situation sounds like an example of when some brokers put units on the market for a lesser $$ than the market requires and then have buyers outbid each other.
You are better off staying away from such deals.