Home Buying in Las Vegas>Question Details

Tim, Home Buyer in Corpus Christi, TX

Should I get in bidding war with other buyer?

Asked by Tim, Corpus Christi, TX Mon Nov 22, 2010

I put in a short sale offer which was above the currently approved bank amount. There was one other offer which above mine, and I received notice tonight, that the other buyers offer was VERBALLY accepted.Both offers are in cash. I am considering verbally offering more before the seller gives a written acceptance. I am very impressed with this particular house due to the custom design, location, and view. I have searched for 8 months and not found anything close to being similar. In this area it strangely appears that homes either go for around $75 sq foot or $175 a sq foot, and the banks approved amount was around $78/sq foot. There are lots nearby that I could build on, but the final cost would definitely exceed $150 sq foot. Should I offer the maximum that I am willing to pay (maybe $90 sq foot) , and at least feel as though I didnt let this home get away, or simply move on.

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13
If this is something you must have & is so incredibly unique - submit your highest and best before final execution. I also want to reiterate that a short sale is not a sure thing even if previously approved. It will still have to go through a new approval process since most approvals are specific to the buyer.

New stuff comes online every day so if you don't get this one - there will be more.
2 votes Thank Flag Link Tue Nov 23, 2010
Hello Tim....

When purchasing a property there are at least two items to consider strongly:
1. Take a good look at FMV [Current Fair Market Value]
2. Take a good look at IV [Intrinsic Value: What is your personal value of the property to you!!]

When it comes to banks within this day and age [either short sales or REOs] the banks are selling at least FMV.
Therefore a short sale approval is likely to successfully occur with a FMV offer.

The above two mentioned items are the tangible and untangible items, that ultimately is your decision to consider for pursuit.

Should you or your friends/family have any Las Vegas real estate needs or questions, please feel free to contact me at anytime....
Thanks and have a great day!

Julia St. Marie, ABR, RRG, RSPS
Realty ONE Group
Certified REO Specialist
Direct: 702-355-H-O-M-E (4663)
Office: 702-898-0101
Email: LVRealEstateLady1@yahoo.com
Web: http://www.LVRealEstatelady.com
Blog: http://activerain.com/lvrealestatelady
1 vote Thank Flag Link Tue Nov 23, 2010
Even though you are offering cash I would suggest that you also change your terms. Maybe adjust the amount of time it will take you to close.
0 votes Thank Flag Link Thu Nov 25, 2010
Do you have an agent, and if so, what is he/she advising...have you reviewed comps--recently sold similar properties in the immediate area--if so, what did the data suggest as to a fair offer--at this point if the other offer was accepted, yours may become a back up offer and would only be considered if the current deal fell apart--your agent can best advise as to how to proceed.
0 votes Thank Flag Link Tue Nov 23, 2010
Hi Tim,
Short sale approvals are "buyer specific" so if there is an approval it may be for the other buyer, and your offer may be a back up. It seems like the other buyer put thier best foot forward when submitting their offer and that could be the reason why it was accepted. You may have lost your opportunity on this one, but I do recommend submitting your best offer to start with on the next one because you may not get a second chance.
0 votes Thank Flag Link Tue Nov 23, 2010
It depends on how you are going to feel if you don't get that house. If it is indeed, unique, then you may want to do what it takes to buy it, as there probably won't be another one. Also, if you plan to hold it for 10 years or more, the market will eventually take care of you, even if you over-pay a little.The inventory is very low in Las Vegas right now and multiple offers on properly priced properties are common. And, houses often sell for over list price when this happens.
0 votes Thank Flag Link Tue Nov 23, 2010
Tim -

Only bid what you are willing to pay.

If it ends up not being enough - just move on to the next property.

Good Luck!

Gerry Dunn
Associate Broker
Serving Maryland, D.C. and Northern Virginia
703-216-9100
0 votes Thank Flag Link Tue Nov 23, 2010
Hi TIm,

It sounds like you may not have a buyer's agent, which is highly recommended. If this is correct, please, get one. They will be able to advise you on the true suggested fair market sales price, and will better assist you with negotiating and find the right home.

If this is the property you are set on, you could post the address here, or you could e-mail it to me, myself or another agent will be happy to give you a second opinion on the suggested resale price and a list of comparable homes!


Tim, my team and I can help with any of your Las Vegas Residential Real Estate needs or questions; feel free to contact me direct.

--

Sincerely,

Mark D Fleysher, MBA, Broker, REALTOR
The Jack Conley Realty Group
C. 702-291-8186 F. 702-946-0843
0 votes Thank Flag Link Tue Nov 23, 2010
Tim,

If you are seeking property that is available through the distressed RE market you are obviously searching for value. By becoming involved with a "bidding war" you will likely end up paying more for the property.

Don't make the purchase process any more complicated than it needs to be....What is a fair market value? What will it cost to bring its condition up to your personal standards? Is this the perfect home for your needs? What are you willing to pay to call this property your home?

Our recommendation: If this home is "the one" make an offer that will get their attention.......and meet your budget.

Good luck,

Bill
0 votes Thank Flag Link Tue Nov 23, 2010
If you can bid knowing your top dollar and stay there go ahead.
If you could feel pushed to overpay at all walk away.
0 votes Thank Flag Link Mon Nov 22, 2010
It comes down to: is the home what you want and can you afford it. If it is what you want, there are various ways that your agent can express your interest without paying to much more than the other bidder. You can offer a certain amount over the highest bid with a limit of x-amount.

As you stated, the home would be a bargain when compared to what it will cost you if you build in addition to the time and headache of building a custom home.

Only you can decide how much the home is worth to you since it is a cash purchase (no appraisal will limit you). Prices are incredibly low on homes, so paying more right now is still paying less than what the home will cost when the 4closure market is dead and gone.

Factor in how much time you will need in order to find a replacement and the distinct possibility that you will end up in another bidding war. Desirable properties will more likely than not end up in a bidding war. Only you can decide when to hold or fold! Also consider, is your productivity suffering at work during your home search…could you be making more if you were more focused on work rather than your housing needs. If so could you actually save money by paying more for this home in order to end the search process once and for all and get back to work full time at full speed?!?!

Best of Luck!

Valerie Edwards, REALTOR
ABR, RRG, SRS, SFR, SRES, RSPS, GREEN, ATHOM
Premier Real Estate
(702) 371-5533
0 votes Thank Flag Link Mon Nov 22, 2010
If you like the home try offering more and put it in writing through your agent with an addendum. Verbally offering something doesn't count in real estate. Lastly, you may still not get this home. It is a complete toss up.
0 votes Thank Flag Link Mon Nov 22, 2010
I have had a short sale and a Auction property sell for over price and then the lender/bank/owner of record come back and reject the offer some weeks later. If you are in love with the house I say go for it BUT be prepared that it aint over until its over.
0 votes Thank Flag Link Mon Nov 22, 2010
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