I found the dream house with the husband. Listed $788K. We saw it before the open house. Our realtor called the seller to offer $850 no contingencies. The seller said no. We said okay $900k but with an appraisal contingency. He said, “I’ll call you back in an hour.”
He never called back. He had the open house. We submitted an $850 offer. Seller called us after the open house to consider the $900K contingent offer. We submitted the offer. MEANWHILE, he will NOT release ANY of the inspection paperwork after our many inquiries.
Our agent gets a call from the seller saying he went with an offer of $935k with no contingencies. That’s that UNTIL…
My HUSBAND calls him. He pretends to be a new buyer and asks if the property is still available. The seller says yes it is. Husband asked what the top offers are, seller says in the high 800’s and encourages my husband to submit an offer for $900k.
Here is my question WHAT THE HECK IS GOING ON HERE!?
My speculation is listing agent is trying to get as many offers as possible and set buyers up for bidding through multiple counter offres.
In my opinion, they have offer higher than 900k.
Otherwise, they were not confident about your loan? How much downpayment did you offer? Sellers prefer 30% or more downpayment to be safe with loan in case of lower appraisal than offer price.
That is the issue. If the appraisal comes back at anything below 900k you would have to pay that in cash. Since you don’t have it, the seller would need to take a lower than agreed to price. In this market, you really need to show 25%+ to accommodate any appraisal issues. I think the sellers are looking for a stronger offer.
Yes. Normally, sellers (and LA) will have their own appraisal value and list around that amount.
In this case, they keep on increasing one by one counters until current buyer is frustrated.
I have seen similar cases,many times, we used to walk out of the home, the seller finally settles a price less than our offer.
I remember a case, the home was listed 750k (2011 period), they lifted the price until 860k (our offer), when they wanted further to 900k, we walked out. Finally, I saw the home was sold at 820k.
In 2004, a home was listed at 950k Cupertino, multiple rounds lifted to 1080k (our offer), they further negotiated to have 1.1M, we walked out and finally sold to 1020k.
This is very common, but they eventually land at regrettable price. The best is to move out to next home when it reaches uncomfortable price.
In both the cases, we submitted offers to other homes and settled within our limit.
I guess this is the case.
I was in the similar situation (or worse because they broke the deal a few days after i accepted their counter offer and deposited EMD. LA even set up the appointment with appraiser from my lender) a couple of months ago but i am under the contract with much better deal now.
I am sure you will find the better one!
Yes, just needs to show it, but if they start seeing funds from 401k or questionable sources, they can see weakness. The seller wants the confidence that if the appraisal comes in lower, the buyer can absorb all of that (even on a non-contingent offer).
Exactly. Seller is just selling for the highest price the market will bear. Buyers are trying to “steal” for below market price. Both are greedy, which is perfectly fine. That’s what makes America great.
Rent control is demanded by greedy tenants.
Greed is a normal human trait. What is an aberration is the government deciding winners and losers and stopping development.
