Could you suggest offer language to convey that we are interested in providing a matching price to the highest bidder.?

Asked by Sg, Campbell, CA Sun Apr 27, 2014

I don't want to overpay a huge price if I don't have to; but don't want to be losing the house either. Has anyone used a language that motivates the buyer to come back to you and give a chance to match the highest bid? In that case, how do we know what is the real highest bid; or you take seller's word?

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11
Cindy Davis, Agent, San Diego, CA
Thu May 15, 2014
I agree with my colleagues. This is a great example of why you should be working with a Realtor.
1 vote
Huey Nguyen, Agent, San Jose, CA
Mon Apr 28, 2014
Hi Sg,

Yes, I have helped my clients draft such language in an addendum and have communicated my Buyer's intentions to the listing agent regarding these kinds of matters in the offer process. I strongly suggest that you discuss this matter with your real estate agent. Your agent knows best your financial goals you have communicated to him/her, your goals, sales comparables, and other information to be the best prepared to help you draft your offer.

Good luck,


Huey Nguyen
1 vote
Bill Eckler, Agent, Venice, FL
Mon Apr 28, 2014
Sg,

It's understandable that you "don't want to over pay" for a home. However, by indicating you are only willing to match their highest offer, you may be effectively removing yourself from any serious consideration.

Place yourself in their shoes...what would attract your interests? Obviously an offer that conveyed the fact that your offer is one that exceeds others in some way. My recommendation, revisit the drawing board and try to come up with ways that will set your offer above all others.

Just keeping it real!

Good luck,

Bill
1 vote
Irina Karan, Agent, Fort Lauderdale, FL
Mon Apr 28, 2014
The best way to get the house, which is your main goal, is to know what the real market price is (objectively), which your agent can advise you on by providing comparable sales in immediate area. Your agent can also show you how the value of the property is calculated, based on appraisal principals.

If you are buying the house for yourself, you have to decide how high a price you are willing to pay in order to get it. Sometimes, buyers love the house so much - they are willing to go higher than the market. Usually, this happens after the buyers have been looking for a while and they didn't fell "comfortable" in any of the houses that they had seen prior to finding "the one".
Or, they made offers, but their offers were too low for the market, and they didn't buy as a result.

Once you decide how much you are willing to pay to get the house, have your agent do some recon for you - to find out about what activity is going on re. the house in question. Have him/her ask the listing agent questions like: How many people came to see it? How many buyers came more than once? Did the sellers entertain any offers? Is the seller motivated or he is just testing waters? It's unlikely that the listing agent will tell what the other offers were. They are not supposed to, anyway.
But, some of the info you could get asking "allowed" questions could help you in your quest for this house.

There is no language to motivate the buyer to come back to the seller.
However, the listing and the selling agents should be able to create a good enough relationship to make the meeting of the minds (buyer and seller) possible. In other words, if you instruct your agent to make it known to the seller that you really love the house and are willing to work on a fair price, and your agent stays in constant touch with the listing agent, and your offer is prepared meticulously (showing that your agent is a professional - which makes the listing agent's job easier), and your assets/pre-approval are in perfect order), you should be able to buy a house. There are other tricks of trade - I'm sure your agent can help you in this process.

Sometimes, a letter from the buyer to the seller helps also. In the letter, you describe how you fell in love with the house, and you tell the seller about yourself and your family, and how long you've been looking and how happy you are to find it, finally...

If you are buying the house for investment, then work your numbers and decide if this house is worth buying. If not - next...

Hope this was helpful,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
1 vote
Sam Shueh, , San Jose, CA
Fri May 16, 2014
Matching an offer will not work. Seller is interested in the following:
quickest COE, highest offer, highest down payment. No gating issues(no contingency).

If you are not so sure you should convey to your agent.

Sam Shueh
Keller Wms Realty
0 votes
Elena Talis, Broker, Palo Alto, CA
Fri May 16, 2014
Face it - you are in a blind auction situation. A lot of your success will depend on the skill and experience of the agent working for you - we are experienced negotiators and will be able to read the situation to the best of benefit of our clients.
0 votes
UpNest Top R…, Agent, Burlingame, CA
Thu May 15, 2014
This is a prime example of why you want a well-connected buyer agent. Regardless of writing specific language, a buyer agent who knows the listing agent will be able to offer insight into what the "winning" bid should be or adjusted to. The trick is to find the best connected realtor in the area you're buying, and one of the best ways is to use a service like ours. We connect home buyers with multiple buyer agents who compete for your business with their personal proposals and rebates. Check us to learn more.
0 votes
Dorene Slavi…, Agent, Torrance, CA
Mon Apr 28, 2014
Your Realtor can communicate this to the listing agent verbally, but there is no place in the contract where you can say this.
If your Realtor does a CMA you will be able to easily see what is a "low, fair, or high offer" for a similar house. Use that to guide your offer .
0 votes
Cindy Davis, Agent, San Diego, CA
Mon Apr 28, 2014
Your vest success lies in working with an experienced Realtor. This is something to be asking your buyer's agent!

Take Care.
0 votes
David Lovitch, Agent, Apollo Beach, FL
Mon Apr 28, 2014
I always tell my buyers to put their best foot forward. Increasing an offering price by a couple of thousand dollars equates to a couple of dollars a month.
0 votes
Jim Olive, Agent, Key West, FL
Mon Apr 28, 2014
Not likely. Sellers and their agents typically aren't interested in matched bids, they want winning bids, and they are not likely to tell you what any of the other bids are. Therefore, even if you were somehow able to find out what the highest price offered was, you would still need to offer something to entice the Seller...be it easier financing (cash is king), a quick closing, no inspection clause, etc. Sometimes there is some humanity involved as well....some Sellers would rather see their home go to a family that will raise their kids there, as they did, rather than to an investor who's going to flip it for a profit. So if you have that going for you (and I'm NOT suggesting that you make something up!), you could convey that to the Seller in a letter. Best of luck
0 votes
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