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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Groups:
Legal Aspects of Short Sales, Foreclosures, Loan Mods
BananaTude
Diary of a Realtor
Realtors®
"Whacked"!!!
Tags:
haralson county
carroll county
carrollton ga foreclosures

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

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.

January 13, 2012 12:19 AM
Rainmaker
561,119
Lindsey Hasford
Coldwell Banker Vision

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.

January 13, 2012 12:27 AM
Rainmaker
572,316
Phil Leng
Phil Leng Team - Residential Real Estate Experts &
Keller Williams Eastside Market Center

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

January 13, 2012 12:30 AM
Rainmaker
160,972
Karen Steed
Associate Broker Haralson Realty licensed in GA and AL
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton

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.

January 13, 2012 12:33 AM
Rainmaker
210,410
Christine McDaniel
Broker Associate
Red Key Realty Leaders

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.

January 13, 2012 12:34 AM
Rainmaker
826,414
Tim Lorenz
949 874-2247
TIM LORENZ - Elite Home Sales Team

Karen

Multiple offers are usual when properties are below market.

January 13, 2012 12:34 AM
Rainmaker
160,972
Karen Steed
Associate Broker Haralson Realty licensed in GA and AL
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton

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.

January 13, 2012 12:49 AM
Rainmaker
219,728
Ava Anderson
REALTOR-Dedicated to Superior Service
Solid Source Realty Inc

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.

January 13, 2012 12:52 AM
Rainmaker
153,775
Carla Dimond
(Silicon Valley)
CATARRA

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.  

January 13, 2012 01:01 AM
Rainmaker
195,875
Cathy Wilder
Adult Community specialist
Award Realty

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.

January 13, 2012 01:24 AM
Rainmaker
395,804
Cameron Novak
Featured Corona Real Estate Agent Team
The Homefinding Center

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

January 13, 2012 02:08 AM
Rainmaker
246,273
Mike Dobbins
Scottsdale, Cave Creek, Carefree
West USA Realty

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

January 13, 2012 10:56 AM
Rainmaker
160,972
Karen Steed
Associate Broker Haralson Realty licensed in GA and AL
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton

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.

January 13, 2012 11:57 AM
Ambassador
828,364
John McCormack
AlbuquerqueHomes.com
Albuquerque Homes Realty * www.AlbuquerqueHomes.com

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.

January 14, 2012 09:46 AM
Rainmaker
990,791
Sharon Tara
New Hampshire Home Stager
Sharon Tara Transformations

 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!

January 23, 2012 02:46 PM
Rainmaker
160,972
Karen Steed
Associate Broker Haralson Realty licensed in GA and AL
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton

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.

January 31, 2012 08:14 PM
Anonymous
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Rainmaker
160,972

Karen Steed

Associate Broker Haralson Realty licensed in GA and AL
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