Can Potential Buyer Ask for Proof of Other Offers?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What difference does it make? Why do you want proof?

What kind of idiotic question is this?

They want to know so they aren't bidding against themselves!

You put in an offer for what you think the house is worth to YOU. You are not bidding against yourself. You have your price, you offer it, and that is that.

Obviously not a student of economics ... supply/demand, competition, etc.

[Anonymous]

OP again, let me say that it is not surprising to me that there is another bidder. There are a lot of buyers out there, and all decent properties get a lot of attention. This property had almost no open houses last season and then two in the last few weeks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What difference does it make? Why do you want proof?

What kind of idiotic question is this?

They want to know so they aren't bidding against themselves!

You put in an offer for what you think the house is worth to YOU. You are not bidding against yourself. You have your price, you offer it, and that is that.

Obviously not a student of economics ... supply/demand, competition, etc.

Nope...I disagree. A house is worth only what it is worth to YOU. It can be worth more to another party, it can be worth less to another party. Just because it's worth more to someone else, doesn't mean you should increase what you're willing to pay. I'm not saying this is not how the real estate market works. But it is how many people find themselves paying more than what they though the top of their range was.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What difference does it make? Why do you want proof?

What kind of idiotic question is this?

They want to know so they aren't bidding against themselves!

You put in an offer for what you think the house is worth to YOU. You are not bidding against yourself. You have your price, you offer it, and that is that.

Obviously not a student of economics ... supply/demand, competition, etc.

Nope...I disagree. A house is worth only what it is worth to YOU. It can be worth more to another party, it can be worth less to another party. Just because it's worth more to someone else, doesn't mean you should increase what you're willing to pay. I'm not saying this is not how the real estate market works. But it is how many people find themselves paying more than what they though the top of their range was.

That's the point though, that people have a range and of course they'd like to get the house for as cheap as possible. Their willingness to move within that range is where the supply/demand kicks in.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What difference does it make? Why do you want proof?

What kind of idiotic question is this?

They want to know so they aren't bidding against themselves!

You put in an offer for what you think the house is worth to YOU. You are not bidding against yourself. You have your price, you offer it, and that is that.

Obviously not a student of economics ... supply/demand, competition, etc.

Nope...I disagree. A house is worth only what it is worth to YOU. It can be worth more to another party, it can be worth less to another party. Just because it's worth more to someone else, doesn't mean you should increase what you're willing to pay. I'm not saying this is not how the real estate market works. But it is how many people find themselves paying more than what they though the top of their range was.

It's kind of silly to think that there couldn't be a range of what the house is worth. My preferences are not so precise that they can be nailed down to the exact dollar. I have a bottom and top end. I'd rather not pay the top end, but will if necessary, especially of there is competition.

[Anonymous]

I think you have a right to see other offers if an escalation clause kicks in.

[Anonymous]

Anonymous wrote:OP again, let me say that it is not surprising to me that there is another bidder. There are a lot of buyers out there, and all decent properties get a lot of attention. This property had almost no open houses last season and then two in the last few weeks.

The bolded is entirely irrelevant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I believe you only have a "right" to proof if you have an offer in and an escalation clause is used. You can then ask to see the other offers that raised your initial offer price. Some agents do pretend there are other offers - it is unethical.

I always wondered how you proved there were other legit offers if there is an escalation clause. I mean, couldn't one just get their uncle/friend/whatever to put in an offer two or three thousand dollars below the max escalation price? Sure, it's highly unethical but as a buyer it seems like you'd be stuck.

I've always wondered this as well - and especially when the escalation clause kicked in practically to the dollar of our ceiling for our last purchase.

[Anonymous]

Jumping JC on a pogostick. Your realtor should know this stuff. Submit your contract w/o escalation clause UNTIL the other party has officially submitted an offer. Emails, phone calls, notes from a pigeon - don't mean jack and are not legally binding. If and when that other offer comes in, modify your contract with escalation cause. It's your realtors job to babysit the progress until they review contracts.

[Anonymous]

OP. It is unethical. What if you did this and the seller disclosed your terms to another buyer? What would be your reaction

If you think the seller is bluffing you can wait a few days to submit an offer

[Anonymous]

I will say this: When we sold we had four offers and word that another three were still to come. We went back and asked for "best and final" from those who had already sent in a contract. But the "best and final" was due at like 6 p.m. the day we sent out the notice. So, we weren't really screwing around or anything. So to OP, I'd pick a number -- lower, if you want -- and make it your "best and final." Worst case scenario is there IS another bidder and you don't get the house (and price isn't everything). But don't despair -- there are other houses.

[Anonymous]

Anonymous wrote:OP. It is unethical. What if you did this and the seller disclosed your terms to another buyer? What would be your reaction

If you think the seller is bluffing you can wait a few days to submit an offer

I'm curious why it's unethical to disclose the terms of other buyers? Obviously personally identifying information shouldn't be revealed but I don't see the harm otherwise.

As a buyer, I'm not sure it's a game I would want to play if a seller was baiting me to offer more, but it seems like it should be their perogative to do so if they choose.

[Anonymous]

Anonymous wrote:I think only when a formal escalation clause is in place. It's totally common for the sellers agent to say, "There is another offer coming in..."

I know of 2 cases in the last two weeks. Both buyers stuck to their original offer price and got the houses. Sellers did not even counter.

Although, it really depends on hot market neighborhood/street or not.
A few houses in our former neighborhood have sold in the last 4 weeks, and from the data online, each house appeared to be priced at/above market (>$100,000 over peak 2005 sales prices), and sold 10-27k over the list price the first week.

[Anonymous]

Anonymous wrote:I will say this: When we sold we had four offers and word that another three were still to come. We went back and asked for "best and final" from those who had already sent in a contract. But the "best and final" was due at like 6 p.m. the day we sent out the notice. So, we weren't really screwing around or anything. So to OP, I'd pick a number -- lower, if you want -- and make it your "best and final." Worst case scenario is there IS another bidder and you don't get the house (and price isn't everything). But don't despair -- there are other houses.

Totally agree on this. Rent back, financial strength of buyer, etc. are more important to some, than $5-10,000. This was the case with my family members' home sale in CCMD.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP again, let me say that it is not surprising to me that there is another bidder. There are a lot of buyers out there, and all decent properties get a lot of attention. This property had almost no open houses last season and then two in the last few weeks.

The bolded is entirely irrelevant.

Since both bidders saw the house at an open house and then put in a bid, it is quite relevant. Since the house is overpriced, I know that we wouldn't have bothered making an appointment to see on that basis.