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Multiple Offers are like a Vulture Feeding Frenzy

By
Real Estate Agent with Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com 0480809

The Austin market is moving along though many people felt the momentum could never sustain in 2013.  We're also finding out that it doesn't matter if the house shows well, it will still sell!

I showed a house on Friday. 1 day on the market. The comments said it needed foundation work, and there were only two interior pictures with the rest being exterior. That means you're buying the trees, the view, the location. The house was in horrible condition.

multiple offers in austin tx real estate homes for saleI met my buyers there and we walked the house with about 20 other people. It was a vulture feeding frenzy.  Those agents who say there should only be 1 showing at a time and how you should wait your turn better take notes!  We all stayed out of each other's way for the most part. Many times, several people would be in the same room and comment to each other about this or that. There were many conversation points about the house as it had never been updated since its 1973 build date.

I called the listing agent at about 10:30 that morning and told him I would be back at my office in a couple of hours and wanted to confirm his email address for submitting an offer, and also asked how he was going to handle the offer situation. I asked if he was going to hold offers through the weekend, or send notice for a Best and Final or if they were just going to select one they liked. His response, "I already sent out notices for Best and Final and they're due by noon..."

Yikes!  I asked if he was allowing new offers within his Best and Final group that he already received and asked how many offers he had in-hand. He said he had 8.  It was only 10:30 Friday morning!! He said we could compete if it was submitted by noon.

I called my buyers and told them I was canceling my errands and heading back to my desk right then to write up the offer. I told them the details I was given, and they decided to increase their offer price and earnest money amount. Without saying real numbers, I'll use percentages.  We offered 23% over the asking price, the earnest money was 28% of the asking price, no inspection period, no home warranty, no closing costs, no nothing, and a 9 day closing.

I thought that was a very strong offer...

I called the listing agent at 11:55am to let him know I just submitted the offer and to check his email.  He said we were offer #11, lucky 11... I tried to get feedback from the listing agent, but he wouldn't give any information as I verbally told him what was in the written offer. He sounded surprised at the earnest money deposit, and said that was the highest amount submitted thus far. I told him "My buyers are serious, and serious buyers put up the money necessary when it's cash with no inspection period."

He told me I would have a response by 4pm. Around 3:30pm, I received an email. I was so excited that he was actually true to his word on responding when so many other agents just don't care.  He said the seller chose another offer.  Wow, thump...  I responded back asking if we were close.  His response was that the earnest money was the highest but the offer price "wasn't even close"...

Wow! The price we offered, 23% over the asking price, wasn't even close?  What's going on around here!!??

I might not win every multiple offer situation, but I can tell you that I will work hard to get your offer accepted. If a house is priced high, low, or just right, I'm going to tell you that. How high/low you offer is your own comfort zone.  If you can sleep at night because you didn't get the house, you made the right decision. If you can't sleep at night because of the "woulda could shoulda" running through your head, you didn't offer enough. Put your best foot forward and you'll win your bid.

 

**Are You Packed Yet?**

donna harris Realtor Austin TX blog

Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.com
Donna@DonnaHomes.com
austin-texas-homes-for-sale.com

Austin TX Real Estate

and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way. 

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** Multi-Million Dollar Producer Year after Year **

Copyright© 2013 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Multiple Offers are like a Vulture Feeding Frenzy
* was first published on donnahomesblog.com.

Kathy Stoltman
Ventura, CA
RETIRED

Donna, this market that most of us find ourselves in, is very troubling to me. In many cases, it will be the cash buyer that wins, because the appraisal issue goes away. At some point, we will lose good "owner occupied" home buyers who live and work in the area who will be priced out of the market.

Mar 26, 2013 06:36 AM
Jackie Vaughan and Patrick Smith, Howard County,Maryland
The Jackie Vaughan Team - Columbia, MD
The Jackie Vaughan Team

Multiple offers on an attractive listing are always tough for a buyer. Our market is coming back, and we are starting to see mor and more of them.  Good luck in the future!

Mar 26, 2013 06:38 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Donna I totally understand as we've been dealing with this type of situation in Phoenix for close to 2 years now with no end in site.  Unless that higher offer is cash....it will still need to appraise. And with buyers that need financing and don't have a lot of cash on hand that is tough for them to win these type of feeding frenzies.  We've got 60%+ cash offers on our transactions  this past year and sometimes we still don't win the bid. And sometime it makes more sense to walk away and let somebody else deal with the freenzie.

Mar 26, 2013 09:28 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Kathy, All 11 offers on this house were cash. No financing because of the foundation issues.

Jackie, You too!

Anna, The contract that won was "more than 60% over asking" per the message today.  All cash offers.

Mar 26, 2013 09:37 AM
Brad MacKenzie
Brad MacKenzie - Duxbury, MA
Turning Houses into Homes on the South Shore

That's intense. Even the first round must have had some high offers. Quite a story, and not the only one of its kind lately.

Mar 27, 2013 05:51 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Brad, I'm sure it did. That house will come down to the studs!

Mar 27, 2013 07:05 AM