How to Make a Final and Best Offer on Homes in a Multi Offer Market

By
Real Estate Agent with Re/Max Eastern inc. RS143922A
https://activerain.com/droplet/5hvW

 helpfulhannahs.com

Making a Final and Best Offer 

 

 Gated waterfront condos in NE Philadelphia are at a premium right now. I have a list of buyers waiting for these condos to come on the market. There was a time these units just sat on the market. This was many years ago when the Real Estate market crashed and I would write in my posts should have could have would have. Well, now these days have come and gone.

 

The last few condos went well over full price. In fact, one the buyer really liked or shall I say loved had a story of.woe. We knew there would be multiple offers. I called the buyer and we discussed what were they willing to offer as their final and best offer. We had already offered over full price but I felt we needed to offer more. They would not get a second chance. I find most people think they do get another chance. I have to explain no not with multiple offers they take the best and that is it. Done over the best offer wins. There are no second chances. We are making our final and best offer.

 

We decided to go ten thousand over asking price. It was a cash offer without any contingencies. We felt good about this offer. The condo was nice had a great view but needed updating. It was also listed under $200,000, therefore, $10,000 over asking was in our opinion a great offer. It was a really strong offer we felt really good.  

 

OFFERED  RE-JECTED 

 

The next day I received a voice mail there was a higher offer and better offer that was accepted  I want you to understand the listing agent also had a buyer and an agreement on this property. The buyer was not the listing agents. The accepted offer was from another agency. Same terms but higher price. I had that sinking feeling in my stomach. I was so upset. How could I tell the buyers they lost the condo. I felt sick inside

 

This was not the first property they have lost in this community. I had to call and tell them it just wasn't the right property for them another one was out there waiting for them. They would be so upset. I knew it would be best to make the call right away without delay. 

 

Their first reaction was we will stop looking but this passed. I am a firm believer in there is another one a better property waiting for them. After all, this one was nicer than the other properties they had lost. So we are waiting patiently for the next one. the perfect property. The one that is saying "Wait for Me I Will be on the Market Soon"

 

 

 

Are You Prepared to Do What it Takes?

 

My other clients had to go $5,000 over asking price Another cash offer they knew the fan in the bathroom needed to be replaced and the closeted door was off the track but these were little inexpensive items. Again we were in competition with other buyers. Really is it worth losing property for a fan that needs to be replaced in a bathroom they said? 

 

My client had friends living in this development. They saw a steady stream of people going in and out of this condo. They saw two people with an agent at the property for the second time. They told their friends not to play around if they wanted this unit.

 

I had shown them the condo that had sold well over  $10,000 of the asking price. They had not liked that one but this one had everything they wanted. They were hesitant in making this offer but agreed to do $5,000 over the listed price. Without a home inspection

Thankfully their offer was accepted.  They are very excited and have made the appointment to interview with the condo association to discuss the rules and regulations which they have received. Next week we have permission to from the listing agent to go back in the property and measure.

 

 helpfulhannahs.com

 

 

 

 

Are you really approved?

 

Now the Spring market is almost upon us. I am sad to think about what will happen if buyers are not prepared. There are many communities in high demand. Buyers seeking a mortgage or who have a house to sell in the Spring even now have trouble competing.

Buyers call me and say I will not have any trouble selling my house. This may be true but good luck telling that to the listing agent. If the buyer needs the funds from their house to close or does not qualify with two mortgages they have a problem. You must remember most buyers in the Gated Waterfront Communities have cash. It is true in the end the seller gets the money but cash is an easy sale with no worries for the seller. 

No worries whether the house will sell. No worries or concerns will they get the mortgage?. Cash is cash no worries a sure stress-free transaction. That is the transaction that is best for the seller. That is the fiduciary duty the listing agent has to the seller. The fiduciary duty the buyer's agent has to the buyer is to make them aware of this position they are when they go to buy one of these properties. 

 

If the buyer can prove they do not need to sell their house to buy that is a horse or a different color. Perhaps they have a bridge loan lined up. That is the same thing as they have checked it is a cash sale and not contingent on mortgage financing. Perhaps they are approved for their mortgage and not concerned so they check not contingent on mortgage financing. They do however want the property to appraise for the sale price. 

 

Most of all do not start to look without sitting down with your agent and discuss your wants and needs. Have your documents ready and proof of funds on hands so when you find that perfect place you can act on it.

 

If you decide you may need to do financing your agent has mortgage bankers that can help find solutions. These are issues that need to be addressed before searching for the right home not once we find it. Waiting until after we find the perfect house could very well especially in a hot market like this one cause you to lose the opportunity to purchase a house. There are steps to purchasing a home and this is step number one. Not the last step so let's not skip steps. Let's take it one step at a time..

If you will not have trouble getting approved for a mortgage  let's get you approved 

 

 

What is property worth?

 

Recently I had an agent that a put a clause in a cash offer that it had to appraise for the sale price. I was very fond of this agent and would have loved to have closed his offer but I had two other offers. His was the only one with this clause and his answer was "why should his buyer pay more than the property was worth"

 

My answer to him was something I learned when I first started Real Estate. It is my professional opinion and I stand by it. A property is worth what a buyer is willing to pay for it. He looked at me and shook his head and said I was wrong. I then said an appraised value was a professional opinion of value. It was not carved in stone. It could be appealed. He was very annoyed with me. 

 

To be honest I did not think it would not appraise for the value it was going to sell for. As I said it is one person's professional opinion of value. One never knows which way the pendulum swings. The first eighteen months in Real Estate worked in appraisal office so I know how it may work. He lost the house for his buyers for being insistent. He would not take this clause out of the agreement of sale. I did not feel it was in the best interest of the seller to accept his offer when we had two other offers without any contingencies 

 

When you do your best and you still do not get the property I am a firm believer it was the not the right place for you. I have been selling houses since 1985 and I have seen it happen every time. Sounds like ages ago and I love what I do finding that right home for someone gives me that wonderful feeling inside and it will give you that feeling inside when you find that special place that is home. You may be disappointed a few times and lose a couple on the way but when you find the right one it will all be worth it 

  

 Having the Best Agent for You  

 Your agent should have you set up on a portal. There is no reason you should be calling other agents because your agent is too busy for you or went on vacation. If your agent does not return your calls or went on vacation without leaving an associate to take care of you. You need a new agent. Plain and simple. You should receive a call back the same day. If you do not know what a portal is you need a new agent. Unless your agents MLS does not have this feature or it is called by another name.

 

The Portal 

Your agent sends you listings that meet your criteria. This email allows you to view the listing and respond if you would like to see it. It also gives you the ability to search the area for listings and share them with your agent. It eliminated the need for you to go to third-party sites and allows you to use the same tools we use as agents. Thus saving steps and making things easier so you are receiving much more updated information.

  

 

 

 

 

Respect your Agent 

Your agent has a fiduciary relationship with you. He is not telling you to offer over full price to make more money. The small percentage he is going to make is not worth his honor. I would hope after all this time you trust your agent. Uncle Joe, Aunt Liz and your friend down the street all have their opinions but your agent is the professional and knows the market. The truth is if the agent thinks it is not necessary they will say so. Trust and respect are needed in a Real Estate Transaction. Remember there are many areas where there is a shortage of listings. Your agent will know just what areas they are. 

 

 

 

 

The agreement is accepted

When the offer is accepted. There is still work to be done. If there is a  mortgage full application must be made. There is information that is needed to be given to the Title company. You may be asked how you want to take the title. Now don't go out and start buying everything until you settle the house. We do not want to be short of any monies.

We want to make sure we have clear title free of all leans and judgments. We can then schedule a time and place according to the contract. Finally, all that time has paid off we thought we would never find that house but we did. What a great feeling 

 

It takes patience time, perseverance and the right combination. Sometimes you get lucky and you find the right house the first time out. Everything goes your way and there are no problems. Don't think you have to keep looking. Thank your lucky stars that you made your best and final offer that was accepted. 

 

 

 

 

 

Posted by

hannah williams

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Re/Max Eastern

 215 953 8800

215 953 8818

 cell anytime  215 820 3376

HannahRemax@Gmail.Com

 

              contact me to be set up for a portal

 

 

 

 

 

 

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Kate Steven 03/02/2019 10:46 AM
  2. Ginger Harper 03/06/2019 06:52 AM
  3. Margaret Rome, Baltimore Maryland 04/01/2019 08:26 AM
Topic:
Home Buying
Location:
Pennsylvania Philadelphia County Philadelphia
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making a final and best offer

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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Richard Bazinet /MBA, CRS, ABR  There have been many disappointed buyers in multi-offer situations I hope this post is helpful. Glad you enjoyed the video 

Your professional input is always appreciated 

Hannah 

Mar 07, 2019 09:52 AM #58
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Sharon Tara  I had a buyer who was a family member also a black sheep that I loved immensely. I explained to him that when it was the right house for him he would get that feeling inside. On the third time out looking, he was getting really impatient asking when am I getting this feeling we keep looking and I have not felt anything. Low and behold the very next house we walked into he said Hannah I understand what you are talking about I have that feeling. 

I am a firm believer your son will find the right house. It is out there calling wait for me I am coming soon.

Thank you for sharing your experience Sharon it is greatly appreciated 

Hannah  

Mar 07, 2019 10:17 AM #59
Rainmaker
388,319
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Offers with fewer contingencies do look better to sellers when comparing multiple offers....however I find many buyers writing these non-contingency offers don't fully understand the implications and risks.    

Mar 07, 2019 11:41 AM #60
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

They are better for the sellers M.C. Dwyer not better for the buyers. So it is important that we educate our buyers on the risk they are taking. Also, a buyer who is not in a stable financial position should not even consider or advised to remove contingencies. Good point.

Thank you for your professional input 

Hannah  

Mar 07, 2019 11:50 AM #61
Rainmaker
468,591
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Hannah, fantastic post! I was taught early in my RE career the following  I don’t care what you think it’s worth, I don’t care what I think it’s worth, I don’t care what you need to get out of it! It’s worth what somebody will give you for it”.

Mar 07, 2019 10:33 PM #62
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Tom Bailey  Looks like we learned the same information on Value.  So Glad you enjoyed my Post-it means so much to me.

Thank you for sharing your professional Opinion always welcome here 

Hannah  

Mar 08, 2019 08:58 AM #63
Rainmaker
544,326
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Multiple offers for certain areas and price ranges are common in Kansas City.  I always stress to buyers--get your paperwork and pre qualification done up front!  Decide your top dollar and don't 'go over it.  We also have 'escalation clauses' here which I personally do not recommend for my clients

Mar 09, 2019 09:43 AM #64
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Mary Hutchison, SRES, ABR  There are many offices that will not accept escalation clauses as they do present problems. I do however think we will be seeing them in the Spring and Summer months ahead. I had a seller who specifically said she did not want that type of clause. To much of a bother tell them final and best offer she said. We did end up selling way over full price and she was very pleased.

Thank you for your professional input very much appreciated 

Hannah 

Mar 09, 2019 10:13 AM #65
Rainmaker
324,902
Dave Rosenmarkle
Highland Realty - Arlington, VA
32 years of providing fully satisfying service!

I understand the need to be competitive. I also am wary of rushing in to be the highest offer, even in a rising market. Remember the folks who bought in 2006? Finding the balance in looking out for your client's best interests can be difficult.

Mar 19, 2019 11:10 AM #66
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Dave Rosenmarkle  I remember that market very well. The difference between the market then and now is listings were plentiful. Listings in these areas today are few and far between. I have some buyers who have been looking for two years. In the development, that  I am speaking of the prices have still not recovered from the crash. They have sold for much higher than they are selling, for now, I am quite aware of the values  

Thank you for your professional input it is greatly appreciated 

Hannah 

Mar 19, 2019 02:11 PM #67
Rainmaker
65,933
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

Great tips Hannah!

Mar 24, 2019 04:47 PM #68
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Ricardo Mello  You are so kind to say so. Are you experiencing this type of market where you are located?

Thank you for your professional opinion it is always appreciated 

Hannah 

Mar 24, 2019 04:56 PM #69
Rainer
510,516
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Hannah,

Hard to gauge what to offer sometimes. For some, it is a process, since they just entered the process and we have been there all along. Words from us mean little until they have their first experience and find out for themselves what the market is currently up to.

Apr 01, 2019 06:23 AM #70
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

This should be mandatory reading for all agents and buyers. Beautifully written and so feature worthy! Hannah Williams 

Apr 01, 2019 07:48 AM #71
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Dorte This is very true it can be very frustrating for us as well as the buyer 

Margaret Rome, Baltimore Maryland  I am so honored to read your comment. You have warmed my heart.  What a great compliment coming from you. I feel blessed.

Thank you both for taking the time to read and comment  

Hannah 

Apr 01, 2019 07:59 AM #72
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Hannah Williams And I just reblogged. Proud to have this on my post. This just might be a radio topic for me. Thank you!

Apr 01, 2019 08:29 AM #73
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Margaret Rome, Baltimore Maryland  This would make a great topic. Running into this situation more and more especially with condos in gated communities in my area. Have you run into these situations? 

Apr 01, 2019 08:33 AM #74
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Just a few weeks ago, I put in an offer for a buyer and knew there were other offers. We went in at a price my buyers were comfortable with. They, thankfully, did not get it. The following week their dream home was available and we were able to bid before it hit the market. Home Inspection is tomorrow.

Apr 01, 2019 08:59 AM #75
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

You were fortunate Margaret Rome, Baltimore Maryland agents are telling me when they put a home inspection in their agreements even with a cash offer their buyers have lost offers sometimes to an offer with a mortgage contingency.  The agents and sellers are just afraid buyers will use the inspection to negotiate a new price -- Good Luck with your Home Inspection  

Apr 01, 2019 09:27 AM #76
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Hannah Williams I was able to get the new house BEFORE it went on the market and before it was even priced. The agent was getting pricing advice from other agents. I went in with a contract prior to the listing. 

Apr 01, 2019 12:59 PM #77
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