What do You Mean Multiple Offers? I Offered Full Price!

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Real Estate Agent with Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton
http://actvra.in/rbn

What Do You Mean Multiple Offers?  I Offered Full Price!

In Haralson county, and Carroll county, the real estate markets that I work in, many foreclosure homes are listed at below market prices.  They come on the market on Monday and are under contract by Friday.  Most times these homes will have multiple offers, and above list price offers.

I wrote a full price offer on a Carrollton, GA foreclosure on Monday.  On Tuesday, I received the multiple offer notice.  My buyer liked the home, but did not feel that it was worth more than asking price.  Needless to say, someone else has that property under contract.

When I shared the news with my buyer, he was very irritated.  How could a bank not take his full price offer? 

A home is worth what a ready, willing, and able buyer will pay.  Sometimes the list price is too low, resulting in multiple offers, Sometimes the list price is too high resulting in no offers.

The only way to find the right house at the right price is to study the listings, and the solds, and to realize that sometimes the list price is not always the right price.

 

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Rainer
51,288
James Lyon
James Lyon Real Estate - Roseville, CA
916-521-1214

Hahaha, that is funny. I am laughing because it just happened to me and I advised a higher offer. Oh well, what can you do.

Jan 13, 2012 12:19 AM #1
Rainmaker
562,056
Lindsey Hasford
Coldwell Banker Vision - Elk River, MN

What's frustrating is being the Realtor for the bank and telling them what a home is worth and having them price 20k under it.... all it does is create more work for the listing agent to get the price they suggested in the first place.

Jan 13, 2012 12:27 AM #2
Rainmaker
573,702
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Good post.

If the price is under market there will be multiple offers.

The buyer who wants it the most will get it.

The rest will be frustrated.

Phil

Jan 13, 2012 12:30 AM #3
Rainmaker
161,797
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty licensed in GA and AL

Hi James - the list price is only a suggestion.  My buyer offered the highest amount he could, based on repairs, but it does not make the defeat any easier.  I hope 2012 is a good year for you and your clients.

Jan 13, 2012 12:33 AM #4
Rainmaker
211,648
Christine McDaniel
Red Key Realty Leaders - Crown Point, IN
Broker Associate

Karen,  We had one l ike that here.  The agent listed it way below list hoping for multiple offers.  The listing got many multiple offers.  The bank didn't accept any of them and the home sat for 6 months or more after that.

Jan 13, 2012 12:34 AM #5
Rainmaker
848,083
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Karen

Multiple offers are usual when properties are below market.

Jan 13, 2012 12:34 AM #6
Rainmaker
161,797
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty licensed in GA and AL

Lindsey - I can only imagine what the listing agents go through having to deal with all the paperwork created by multiple offers.  I have enough paperwork writing buyer offers that go to multiple offers...especially with the addendum most banks require.

Phil - you said it.  I am dealing with lots of frustration.

Christine - I just closed a HUD that we were the non winning offer on first time around.  The first offer did not close so we got a second chance after 6 months.

Tim - So true

I hope everyone has a great year in 2012.

Jan 13, 2012 12:49 AM #7
Rainer
220,908
Ava Anderson
Solid Source Realty Inc - Snellville, GA
REALTOR-Dedicated to Superior Service

Hi Karen, I've been seeing that a lot.  My last 3 offers ended up with multiple offers.  On one we offered full price on the multiple offer and the the house appraised 5k less than the full price, another we offered $10,000 less than the full price and still got the home.  I have one offer out that we offered a little over the full price and I am waiting to see how that one plays out.  In my area I'm noticing that our inventory is low.

Jan 13, 2012 12:52 AM #8
Rainmaker
153,900
Carla Dimond
CATARRA - Mountain View, CA
(Silicon Valley)

Karen, real estate is the ultimate real time transaction experience, it depends on who else is looking at the same time and what they are willing to spend.  

Jan 13, 2012 01:01 AM #9
Rainmaker
198,054
Cathy Wilder
Award Realty - Sun City, AZ
Adult Community specialist

With interest rates inching up and the shrinking number of screaming deals are being chased by more buyers. It is going to get worse before it gets better.

Jan 13, 2012 01:24 AM #10
Rainmaker
396,068
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

Somehow your buyer wasn't educated as to the market value of the home and thought it to be worth less than it was.  Maybe he's learned his lesson for next time.
Corona Short Sale Agent

Jan 13, 2012 02:08 AM #11
Rainmaker
246,273
Mike Dobbins
West USA Realty - Cave Creek, AZ
Scottsdale, Cave Creek, Carefree

Same thing is happening in Phoenix Market, if your not over list, you may not get the home.

Jan 13, 2012 10:56 AM #12
Rainmaker
161,797
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty licensed in GA and AL

Ava - I also notice our inventory is low.  I am told this is due to the delay of foreclosure that the banks did while they were working on the robo signing issue, and the holiday reprieve.  I expect our inventories will increase.

Carla - Exactly.  You never know how many other people are looking, and how much they are willing to spend.

Jan 13, 2012 11:57 AM #13
Ambassador
877,425
John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty

Karen I feel the pain.  Been there several times myself and it's never easy or fun.  I always suggest offering a little over the asking price but it's a hard pill for buyer to digest.  Some listen and get their dream home offers balk and loose the home they really wanted.  The ups and downs of real estate.

Jan 14, 2012 09:46 AM #14
Rainmaker
1,034,123
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

 I have my house on the market and I am closing on another house tomorrow.  The house we just bought was a "triple offer" situation.  We offered $100 over asking price and got it, but I wasn't at all happy about having to pay full price.  It's NOT a foreclosure or short sale situation, and the house had been on the market for 3 months with no action prior to the week we saw it.  Just my luck!  My buyer's agent lost out on a condo she made a full price offer on the same week I got mine...it was a dual offer and they chose the other.  She also found herself in a dual offer situation with another of her buyers a week after mine.  

All of these "dual offers" were two weeks before Christmas.  

Now, I'm just waiting for my two buyers to come forward for my listed house!

Jan 23, 2012 02:46 PM #15
Rainmaker
161,797
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty licensed in GA and AL

Cathy - I am sure you are right.  There is a shortage of inventory

Cameron - He did learn his lesson.  We are currently under contract on another home.

Mike - I know wht you mean.  It seems like everything is multiple offers

John - Yes it is a bitter pill for buyers to swallow

Sharon - Good luck on selling your home.  Maybe you will get multiple offers.

Jan 31, 2012 08:14 PM #16
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Rainmaker
161,797

Karen Steed

Associate Broker Haralson Realty licensed in GA and AL
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