That's an important piece of reality must be recognized.
What is missing from your equation is, "What does a SELLER value MOST?"
I will provide the answer...."THE ASSURANCE OF CLOSING!"
The prospect of haggling over price, the haggling over repairs, the haggling over the appraisal, all protend a arduous path to closing. Your 10% below list in a 'fast" moving market, promised each and every one of those obstacles to the selller. The 'assurance of closing' was but a vapor as it appeared to the seller.
When you find the next condo to buy, consider removing as many obstacles as possible. If you are using a big bank lender your REALLY , REALLY, REALLY need to consider a local lender. BIG BANK LENDER spellls trouble to a seller. I always advise kicking such offers to the curb.
Assurance of closing means EVERYONE saves money. Big bank lender don't share that outlook.
Seller WILL accept a resonable lower price if the assurance is easily seen.
The seller is never required to negotiate any offer.. Whenever you want a property and think there is competition you should always submit your " Highest and Best" offer right from the start. That way if you don't get the property you know you gave it your best shot. Also it's always best to submit your pre approval letter with the offer. The red flags should have been 1. Possible multiple offers on the table and 2. Condos in this area tend to move FAST. Talk to your agent on being successful in a multiple offer situation. Hope all works out for you next time. All the best.
Did your agent show you all the comparable sales?
You must also take into consideration what else is available. With low inventory you can expect prices to go up.
I am so sorry that this has happened to you!
The market in this area has changed so much over the last year... What seemed like a good strategy just a few months ago is now hurting current buyers. The laws of supply and demand are making it necessary to make a higher bid to acquire the property or someone else will... especially if its a nice home at a decent price....
Again... Very sorry, but only one person to a home and if multiple parties are interested... someone is going to get burned.
Best of luck in the future... hope you find that perfect home!
I'm sorry this didn't work out for you. Unfortunately it's the nature of the beast, especially in this market. When inventory is low and demand is high, it's almost pertinent to come in at best offer upfront if you know there is competition. This way, you know that you went in at your best, and there was no chance for you if the offer wasn't accepted. In other words, make them an offer they can't refuse but include your terms as well (without going crazy). If you have good terms (nothing to sell, excellent credit and pre-approval) it'll be worth it.
Better luck next time!
Sorry things didn't go your way on this transaction. You were in a multiple offer situation with other offers on the table already. In a multiple offer situation, I tell my clients that they need to make their highest and best offer because anything below asking price is not going to be a winning bid and is a waste of time.
The bottom line is that your first offer should have been the highest amount you were willing to pay for the property. There is nothing wrong with making your highest offer first and not going up a penny more. It depends on the situation; and, in a multiple offer situation you often only get one shot.
Despite the large number of condos in Mahwah, the Mahwah condo market is always a seller's market.
Good luck on your next attempt.
:) Love that. So why is this discussion not about when you are closing?
"a place nearby just sold that was only $10K above my offer "
That being said.. why would the seller take less? Sounds like the other offer was probably much more than yours. That $10,000 to you is about $30 more a month on a 30 year mortgage.. it is $10,000 CASH more to the seller.
What would you do?
The market is up and down and all over the place. What people do not understand that although there is inventory out there.. the good ones go quick. Keep this in mind on your next offer. Amongst Realtors we always say that some clients need to lose one or two before truly gettng serious. Don't be insulted by that, it is just a fact.
What did your Realtor say to you about your offer? Did you base the offer on comps? Or what you felt you wanted to pay and the common misconception of offering 10% under asking price?
I'm not saying it's right, but it's TYPICAL that in a multiple-offer situation, the seller elects to negotiate with the best offer on the table and leave the rest behind.
All the best,
I know the current market like the back of my hand and do the research. I know the location of every place I look at ahead of time and my realtor follows me. I'm familiar with the comps in the area - and kept this in mind with my offer because a place nearby just sold that was only $10K above my offer and it appeared to be VERY similar, might have even been in better shape but I had not seen it.
Anything I could have done different?