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Bidding War

Discussion in 'Anything goes' started by sostartled, Jan 8, 2011.

  1. sostartled

    sostartled Member

    So, my wife and I are in our first bidding war for a house. I can't even describe this extremely stressful situation; only people who have been there before can empathize. We've found a place outside DC that we LOVE, and have verbal offer in the place. This townhouse is one of a kind; a brick town house in a small community that's close to the metro and other amenities. It's almost 1,000 square feet more than it's nearest competitor in the area. The seller has moved out and has to sell, but he apparently has several verbal offers to consider. Their realtor likes our realtor, so they want to work with us (which I know = there aren't as many offers I said there are). But we're sitting on pins and needles waiting to hear what the deal is.

    Has anyone else been in this situation and have any advise / war stories / cautions?
  2. Iron_chet

    Iron_chet Well-Known Member

    Other verbal offers are BS, if it is not in writing then they don't have multiple offers.

    Know your walk away point and as hard as it is, leave the emotion out of the process.
  3. SoCalScribe

    SoCalScribe Member

    Don't overpay too much based on emotion, but feel free to raise your offer a reasonable amount and then stand pat. A few thousand over 30 years won't affect your lifestyle, but more than that might.
  4. spnited

    spnited Active Member

    Verbal offers mean nothing. Have your realtor put your offer in writing, then see if anyone matches or exceeds it with a written offer.
  5. old_tony

    old_tony Well-Known Member

    In this housing market, it would be a sin to overpay.

    Do. Not. Overpay.

    No matter how much you like the place. Make sure your realtor is very real with you on what the property values are for that area.
  6. I'll never tell

    I'll never tell Active Member

    I'm with old tony. I just sold a house recently, and I know the market is flooded.

    But I will say this: If you can't find something wrong with the house, make up something. Then tell your real estate agent -- yes, yours -- that's your falling out of love.

    If he/she knows you're in love, she's already quit trying and won't try to save you a dime from here on out. I know all this, because my inlaw is an agent and sadly they all work about the same way after they've found you whatever.

    If this is your first house, good luck. My mind was blown about two or three times over.
  7. BTExpress

    BTExpress Well-Known Member

    No, it's not.

    Realize that, and the stress melts away.
  8. imjustagirl

    imjustagirl Active Member

    I'm hoping to buy my first place in the next year or so. I'm addicted to all the house-buying shows, and they always kind of gloss over the bidding wars parts.

    "There are seven offers on this house."
    "Oh no. I don't want to get into a bidding war."
    "We bid $5K over the asking price and got the house!"

    So I never know how all this stuff works. Thanks for being willing to share.
  9. Pancamo

    Pancamo Active Member

    Have your realtor go to the MRIS and show you the last 10 sales in the neighborhood. The last thing you want to do is overpay for a home and have to come to the table with more cash than you budgeted based upon emotion.
  10. sostartled

    sostartled Member

    I hadn't thought about this, but it makes sense. And I can certainly see it happening somewhat. One of my biggest issues with the process is not having direct contact with the seller. Having a middleman representing me is not something I'm used to. I hate having to rely on what the realtor says the seller's agent said, especially on such a huge decision.

    This is good. We've actually done this and the asking price is less than what other houses have sold for in the area. The appraisal was done after a previous offer was accepted and it's about 3K more than the asking price.

    My wife and I love the HGTV shows. But they also gave me false expectations that it's a given the seller will pay closing costs and you can knock $10K off the price. It could just be the market in DC, where there's a lot of property, but prices have stayed the same. In our deal, we're negotiating a couple thousand here and there.

    One of the other things I didn't realize was how little effect interest rate differences have on your monthly payment. Meaning, if we get a 4.75% interest rate, the PI would be $1,000 (for example). You go up to 5.25% and it increases your PI to $1,020.
  11. MileHigh

    MileHigh Moderator Staff Member

    Appraisal has nothing to do with it. It's all based on the surrounding neighborhood for similar places.

    Again, you gotta take emotion out of it. Sounds like a great place, yes, but do not overpay. You're the buyer in this market. Remember that.
  12. imjustagirl

    imjustagirl Active Member

    Which is great. Except my credit's so bad I can't even get financed right now, hence the "in the next year or so." So...yeah. 4.75 sounds awesome...and not realistic. :D
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