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What would you do?

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Funkybutt
LIF Adult

Member since 4/15

3049 total posts

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What would you do?

We listed our house recently and had a broker's open last Thursday and a public open on Saturday. By Sunday morning we had 6 offers! 4 weren't great offers, but we got a full price offer and an offer that was $6,000 over asking. We decided to go with the one that was over asking. The buyer has already scheduled an inspection for Wednesday.

Our agent called us this morning and said there have been other offers that came in, but never mentioned them to us b/c we already accepted a good deal. However, someone just came in with an offer that's $24,000 over asking! Chat Icon That would be around $16,000-$17,000 more in our pocket!

It's super tempting, but if we dropped the one we already committed to and the new one has issues, we'd have burned the original bridge. Plus we feel like we've already given our word and if feels wrong to go back on it just for more money. But dang - that's hard to turn down!

What would you do in a similar situation?

Posted 2/6/17 11:31 AM
 
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BlueDiamonds
mommy to 3 boys

Member since 2/07

3885 total posts

Name:
proud mommy

What would you do?

i have not been in the situation from your POV, but the opposite. i was the one buying a house, had an accepted offer (verbal, nothing signed) and completed an inspection. right before we signed any papers, we were told the owners got a higher offer. we couldn't up ours, so we were out of luck. it totally sucked for us, but i can see why they did it.

Posted 2/6/17 11:34 AM
 

JandJ1224

Member since 6/06

5911 total posts

Name:
Jannette

Re: What would you do?

You should try to stall the first offer while the higher offer does home inspection.
That is a significant amount of money. Seems like you have a lot of interest.

I've handled a situation like this as a realtor and its not a great position to be in. I always stress that its not a done deal till contracts are signed.

Posted 2/6/17 11:40 AM
 

luvbuffet
LIF Adult

Member since 7/10

6470 total posts

Name:

Re: What would you do?

highest isnt always best. ask both buyers for their financials.

does one have to sell in order to buy?

can one put more than 20% down payment?

Posted 2/6/17 11:41 AM
 

Hofstra26
Love to Bake!

Member since 7/06

27915 total posts

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Re: What would you do?

Posted by JandJ1224

You should try to stall the first offer while the higher offer does home inspection.
That is a significant amount of money. Seems like you have a lot of interest.

I've handled a situation like this as a realtor and its not a great position to be in. I always stress that its not a done deal till contracts are signed.



I agree. I wouldn't just walk away and leave that amount of money on the table. At least have them get the inspection, you never know!!

That's so awesome!! Good luck!

Posted 2/6/17 11:42 AM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

Re: What would you do?

Posted by BlueDiamonds

i have not been in the situation from your POV, but the opposite. i was the one buying a house, had an accepted offer (verbal, nothing signed) and completed an inspection. right before we signed any papers, we were told the owners got a higher offer. we couldn't up ours, so we were out of luck. it totally sucked for us, but i can see why they did it.



That's how I look at it. If it were me on the other end, I'd be devastated that the rug could just be swept out from under a deal like that. Especially since they're motivated to complete the sale (we're moving out of state in March and the timing is already leaving our house empty for a few weeks).

Posted 2/6/17 11:43 AM
 

luvbuffet
LIF Adult

Member since 7/10

6470 total posts

Name:

Re: What would you do?

may I ask WHY your agent didnt present ALL offers to you?! thats illegal what he/she did!!!

Posted 2/6/17 11:44 AM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

Re: What would you do?

Posted by luvbuffet

highest isnt always best. ask both buyers for their financials.

does one have to sell in order to buy?

can one put more than 20% down payment?



The first buyer is already putting 20% down and the second buyer said $125,000 down (not sure what % that is but the offered price is $499,000).

The thing that makes us a bit nervous about the second buyer is that he works for a bank, and our basement (with full bath) isn't CO'd. We're concerned that the house won't appraise for that much over the asking and that it would cause issues with the CO and appraisal.

Posted 2/6/17 11:45 AM
 

luvbuffet
LIF Adult

Member since 7/10

6470 total posts

Name:

Re: What would you do?

if you dont have a CofO for the basement bath, is it in the listing? Grab some sheetrock and get to work! lol


Posted 2/6/17 11:48 AM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

Re: What would you do?

Posted by luvbuffet

may I ask WHY your agent didnt present ALL offers to you?! thats illegal what he/she did!!!



He presented them all on Sunday morning. The others came in after we had agreed to go with the one that was $6,000 over listing. The others that came in were under asking price so I'm ok with him not presenting them. And the one that's $24,000 over asking was submitted this morning - right before he contacted DH about that offer.

Posted by luvbuffet
If you dont have a CofO for the basement bath, is it in the listing? Grab some sheetrock and get to work! lol



That's the other thing that makes me uncomfortable with the listing. He listed it as 3 bed/2 bath and one of those is the one in the basement. I definitely wasn't thrilled listing it that way, but he said it'll be ok. I guess we'll see after the bank does it's appraisal!

Multiple offers and over asking - certainly not a bad situation to be in!

Message edited 2/6/2017 12:03:37 PM.

Posted 2/6/17 12:01 PM
 

LSP2005
Bunny kisses are so cute!

Member since 5/05

19458 total posts

Name:
L

Re: What would you do?

Have you signed anything? Has offer one spent money on the appraisal? I would tell offer one if ey have not spent t offer two came in. I would tell offer one and offer two, final and best. This way everyone is on he same page and you are upfront about everything.

Posted 2/6/17 12:27 PM
 

jmp1105
LIF Adolescent

Member since 12/11

553 total posts

Name:

Re: What would you do?

When we were buying our offer was accepted, we had the inspection and before contracts were signed the sellers came back and said they had a higher offer. It was 45k more than our offer so I did not blame them for taking it and we weren't willing to match it. Until contracts are signed I think as a buyer you have to expect things to happen. In my case the sellers were very nice and reimbursed us for the cost of our inspection.

Posted 2/6/17 12:39 PM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

Re: What would you do?

Posted by jmp1105

When we were buying our offer was accepted, we had the inspection and before contracts were signed the sellers came back and said they had a higher offer. It was 45k more than our offer so I did not blame them for taking it and we weren't willing to match it. Until contracts are signed I think as a buyer you have to expect things to happen. In my case the sellers were very nice and reimbursed us for the cost of our inspection.



That was nice of them!

Posted 2/6/17 12:53 PM
 

MerryChristmas
LIF Adolescent

Member since 2/16

513 total posts

Name:

Re: What would you do?

I'll preface with I'm one of those money isn't everything and believe in good karma people.
To me a deal is a deal even if the contract isn't signed. I'm sure its very tempting but the deal for more can still fall through. My friend recently listed in Massapequa park. Got an offer over asking and all cash. They wound up backing out.

Posted 2/6/17 1:04 PM
 

WannaBeAMom11
LIF Adult

Member since 1/11

7391 total posts

Name:
Name

What would you do?

Would you entertain reimbursing for the first inspection? As a buyer I would understand the seller taking the higher offer but I would be upset that I paid for an inspection for no reason.

Posted 2/6/17 1:32 PM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

Re: What would you do?

Posted by WannaBeAMom11

Would you entertain reimbursing for the first inspection? As a buyer I would understand the seller taking the higher offer but I would be upset that I paid for an inspection for no reason.



They haven't had the inspection yet - it's scheduled for Wednesday.

DH & I agree about the karma - we already agreed to a deal with one person, and it's a deal that we were originally thrilled to get since we thought the house was over priced and they offered $6K more than asking. If it were a "bad" deal, I would probably jump at the extra money, but it's still a better deal than we ever thought we'd get.

Posted 2/6/17 2:16 PM
 

2girlsforme
LIF Adult

Member since 8/06

3071 total posts

Name:
XXXXXXXXX

Re: What would you do?

Posted by LSP2005

Have you signed anything? Has offer one spent money on the appraisal? I would tell offer one if ey have not spent t offer two came in. I would tell offer one and offer two, final and best. This way everyone is on he same page and you are upfront about everything.



This precisely.

Posted 2/6/17 3:11 PM
 

Christine Braun - Signature Premier Properties
LIFamilies Business

Member since 2/11

3992 total posts

Name:

Re: What would you do?

So you are free to take the higher offer (and your agent is obligated to present all offers, unless you instruct him not to). As others have said, you aren't legally bound until you sign the contract.

That being said - this market is getting crazy. Sometimes I'm finding that buyers have fear of missing out and come in super high or agree to terms with the sellers that they then later change their mind about.

So I would look beyond price and assess the buyers' terms and situations, first of all.

If the buyers that came in $24K over asking seem qualified and serious, then I would talk to the buyers who have the accepted offer at $6K over, explain that you have a significantly higher offer, and ask if they are willing to come up or if they are at their max. At least you are giving them the option.

They haven't yet invested in the home inspection, so if they can't come up, and you take the highest offer, it's not the end of the world. If you do it the right way, and let them know that you appreciate the offer (and are transparent with them about what's happening), they should understand.

And you are in a good position because you have a few good back ups in case something falls through at the inspection and/or contract phases, which unfortunately does sometimes happen.

ETA - You should be upfront with all buyers about the lack of C/O for the bath. Many attorneys exclude basement bathrooms from the contract (as requiring a C/O) and most banks will overlook it. But nobody likes to feel blindsided. They may be giving value to that bath that they otherwise wouldn't if they knew it wasn't legal. As a buyers' agent, I always ask, but if it hasn't come up, I would disclose it now. C/O issues are common but it's best to be proactive and get all parties on the same page early on. Otherwise, it can cost you good buyers/good deals. If you are honest and upfront, many buyers will work with you about it. It's not a huge deal.

Message edited 2/6/2017 4:12:37 PM.

Posted 2/6/17 4:09 PM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

What would you do?

@Century 21 Dallow - Christine Braun - Thanks so much for your opinion! I would feel ok about being up front with the $6K buyer instead of just dropping them.

Posted 2/6/17 4:14 PM
 

Christine Braun - Signature Premier Properties
LIFamilies Business

Member since 2/11

3992 total posts

Name:

Re: What would you do?

No problem.

Ultimately, it's a business transaction and you have to take the best deal for you, trying to maximize your proceeds but also taking all factors into account.

However, I always believe in being honest and fair to everyone (especially in this crazy market). I think buyers just want to know they've been treated fairly and that there's nothing underhanded going on. It's just a very tough market for buyers, so you shouldn't feel guilty about accepting the best offer for you. I think it's just the way it's done that is key. As others have said: karma. Treat others fairly and with respect and hopefully that comes back to you!

Good luck!

Posted 2/6/17 6:40 PM
 

dianadrw
LIF Adult

Member since 5/06

2092 total posts

Name:
Me

Re: What would you do?

We went through this exact situation when selling our house in October. We accepted a full price offer. The next day our agent called and said we had an offer $20K over asking. The first buyer already had an inspection scheduled. We asked for financials from the new buyer. They came back stellar. We went with the new offer. We also reimbursed the original buyer for the cost of the inspection. We felt that was the right thing to do.

Keep in mind this is business. If the financials check out go with the higher offer. My husband was conflicted. I was not. When we put our house on the market our goal was to sell the house in the shortest amount of time for the most amount of money. With financials being equal or better why wouldn't you take more $? Until contracts are signed there is no legal obligation on either side.

ETA: We were up front with the original buyer. They were given the opportunity to submit a new offer.

Message edited 2/7/2017 1:48:40 PM.

Posted 2/7/17 1:46 PM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

What would you do?

How's this for a crazy turn of events....

My realtor strongly suggested that the buyer we choose goes through his mortgage company. So he ran the information for the one we originally agreed to (the one that was $6K over asking) and the down payment was suspicious. We said no way, and now we're going with the buyer that was $24K over asking!

Let's just hope this one goes through!! If it doesn't I think we might have another back up. One of the buyers that we turned down (he was $10K less than asking and his realtor wanted an extra 1.5% on top) came to the house multiple times yesterday - trying to convince DH to go with him. He even said he'd raise his offer. Not that we want to be in business with someone that was super pushy, but if he came up in his offer and got his realtor to drop the extra commission, we might have a back-up!

Crazy world, but I'll be glad when it's all over and we're driving away with that check!

Message edited 2/7/2017 4:34:04 PM.

Posted 2/7/17 4:30 PM
 

Christine Braun - Signature Premier Properties
LIFamilies Business

Member since 2/11

3992 total posts

Name:

Re: What would you do?

What do you mean the down payment was "suspicious"?

But yes, always a good idea for your agent to call the loan officers who issued the preapprovals for any buyers you are considering and verifying all the financials.

Of course, you cannot compel a buyer to use a particular lender, but you can ask them to get preapproved by your realtors' preferred lender, to make sure they are financially qualified.

Sometimes these things work out as they should. If the first buyers' financials don't check out, then you can move on to the higher offer, guilt-free!

Posted 2/7/17 4:38 PM
 

Funkybutt
LIF Adult

Member since 4/15

3049 total posts

Name:

Re: What would you do?

Posted by Century 21 Dallow - Christine Braun

What do you mean the down payment was "suspicious"?




He co-owns a business and the down payment would have been a bonus but the bonus would have to be written to the wife, who would then "gift" it to her husband (the buyer). Our agent's mortgage person said there was some other wonky stuff and strongly suggested we back away.

I'm glad we have the opportunity to have his financials vetted. Would have stunk to get all the way to the end and then he couldn't secure the loan.

Posted 2/7/17 4:57 PM
 

luvbuffet
LIF Adult

Member since 7/10

6470 total posts

Name:

Re: What would you do?

Posted by Funkybutt

Posted by Century 21 Dallow - Christine Braun

What do you mean the down payment was "suspicious"?




He co-owns a business and the down payment would have been a bonus but the bonus would have to be written to the wife, who would then "gift" it to her husband (the buyer). Our agent's mortgage person said there was some other wonky stuff and strongly suggested we back away.

I'm glad we have the opportunity to have his financials vetted. Would have stunk to get all the way to the end and then he couldn't secure the loan.



Sounds like someone doesn't pay their fair share of taxes. Shaaaady

Posted 2/7/17 6:05 PM
 
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