Home Buying in Cartersville>Question Details

Yida, Home Buyer in Cartersville, GA

why do sellers take bids when they already know they have a set price they want for the house. Is it a rip off trying to get people to battle back in?

Asked by Yida, Cartersville, GA Fri Nov 4, 2011

forth too see who will offer more than the original price? Its sad because you really want and see yourself and family in a house then people try too rip you off by taking the highest bidder instead the one who bid first.

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Answers

6
Veronika Barash’s answer
I am sorry to hear about your situation. I assume, you were not under a contract yet. In this case, you can either send your highest and best offer or step aside and see if the "winner" will actually be able to close.

Good luck!
0 votes Thank Flag Link Sat Nov 5, 2011
Why is a seller compelled to sell to the first buyer? Why is a seller compelled to sell to anyone for any price? As far as I know, the seller accepts a price he wants, when he wants it.

If a bidding war gets going then that's a lucky seller. If all he hears are chirping crickets because he wanted more than buyers were willing to pay then he's a dumb seller.

All you need to do is worry about you - bid what you think and let the rest take care of itself.

Hank
1 vote Thank Flag Link Fri Nov 4, 2011
Sellers take back-up bids because the initial bid often falls through. Often, the buyers can't get financing. Or there's a contingency that allows the buyer to back out--such as a home inspection--and it's far more convenient to have a back-up bid than to have to put the property back on the market again.

Beyond that, technically, a house can still be shown even when there's an accepted offer on it.

But, Yida, I'd say you're as guilty of trying to "rip people off" in your role as the initial bidder. Tough language, but true. Is a seller ripping you off by taking the highest bid? Would you suggest that the seller take a lower bid? Let's say you offer $200,000. Someone else offers $210,000. The seller's perfectly entitled to accept $210,000. If you try to somehow pressure or threaten the seller into accepting your lower $200,000 offer, that sounds like a ripoff to me.

If you go to an auction and bid $25 on a clock, is anyone ripping you off if someone bids $30?

Here's what you do: First, get a Realtor. Have the Realtor do a CMA (competitive market analysis) on the property you're interested in. That figure may be higher or lower than the listing price. Then make an offer. Don't spend more than the CMA figure. Probably offer less. But in the example above, let's say the house is listed for $200,000. Your Realtor tells you the CMA suggests it's worth closer to $230,000. You make a decision on what you want to offer. Then offer it. You can include something in your offer saying you'll raise the amount a certain amount if a higher offer comes in. So you might bid $210,000, with an escalation clause going up to $220,000. It's not foolproof, but it helps reduce the chances of someone outbidding you.

But to repeat: A seller who accepts the best offer isn't ripping you off.

Hope that helps.
0 votes Thank Flag Link Fri Nov 4, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
It is hard to answer this question w/o all the available info regarding your situation.

But, in a Good market "Multible offers" are very common. Even in today's market, if a property is actually priced right you will see multible offer scenarios. This condition is great for the seller and not so great for the buyer. As it puts the seller in control. (or at least has a lot more control and leverage)

Your only concern is in offering an absolutely fair (fair to you and your family) offer. These deals sometimes mandate that you simply throw out your Best and Final offer. Win or lose, you still have to face yourself in the mirror every morning. So don't be foolish and get caught up in the emotion of the auction and bid too much!

Best of Luck to you!
0 votes Thank Flag Link Fri Nov 4, 2011
From the Seller's point of view, the Seller normally looks at area sales and appraisals to arrive at a listing price. Of course, the Seller does have a limit not to drop below. The Seller wants to get the most money for the property, just as the buyer wants the most home for the least amount of money. It is not meat to be a rip off, it is an opportunity for the Seller to possibly get the most amount for the property as possible...according to the appraisal.
0 votes Thank Flag Link Fri Nov 4, 2011
What does your Agent/Broker say, Yida? Every deal is different and if you are already represented, it would be difficult for anyone else to address this. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com
0 votes Thank Flag Link Fri Nov 4, 2011
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