Making an offer before the open house

[Anonymous]

Try offering without a buyers agent, this means the sellers agent will get all the commission esp. if you offer at the list price he/she will be more included to recommend to the seller that they take your offer. You do have some leverage, trick is trying to work out the best way and time to use it

[Anonymous]

Anonymous wrote:If someone is going to sell a house, and list it, for say $900K. Then they schedule an Open House. If a buyer offers $900K, the seller is under NO obligation to hit that bid. That bid could be contingent on the buyer selling their existing house, getting a mortgage w no money down, etc. If you were that seller, would you sell for $900K to someone needing 100% financing, or, a cash buyer offering $875K? We purchased our house before it listed; it was in the "coming soon" mode. We put in an offer $20K below what was going to be the ask, owner agreed, no open house, no nothing.

With the stringent pre-approvals going on cash is no longer king as it was in the mortgage crisis 2-3 years a go

What the seller will want is less or no contingencies and the highest offer.

[Anonymous]

Anonymous wrote:Try offering without a buyers agent, this means the sellers agent will get all the commission esp. if you offer at the list price he/she will be more included to recommend to the seller that they take your offer. You do have some leverage, trick is trying to work out the best way and time to use it

I would advise against this since the sellers agent would be writing your offer, but ultimately has the seller's best interest in mind. Would make for awkward negotiations.
You are not as protected.

[Anonymous]

The sellers agent has his own best interest in mind 9makng money now, and maintaining a good professional relationship in the future). Someone who knows anything about behavioral economics can step in now.

So if the sellers agent can get the best deal for him/her self (all the commission without sharing with a pesty buyers agent), and convince the seller that they are also getting the best deal - not hard if you are offering at list price, then you have a deal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As a seller. I would not accept your offer till open house plus a couple of days. Even if you offer full price.

This was us in 2011. We could tell the level of interest and had one inquiry about making an offer before the OH on condition we cancel the OH. Agent replied we would only entertain a full price offer. It didn't come. We had 6 offers within 18 hours of the open house.

Wow- that's awesome. Did you get way above asking price, PP?

[Anonymous]

We accepted an offer on our TH in 2011 right before the open house. The Open House went forward because it was too late to cancel. The realtor told people they would take back up contracts. We actually accepted just below list because the couple buying had a really clean offer, 1/3 the price of the house for down payment. We might have gotten list if we had waited, but it was really not worth losing these buyers who were financially solid and had been looking for 3 months for more iffy buyers who may not get financing. It was honestly a matter of a couple thousand at the VERY most. We knew the market/comps and so did they. They did try to offer what a recent neighborhood comp had sold for at first, and we countered with list because we knew that house had not been as updated/in as good shape as ours. Ours was worth the extra $15K. They countered again much closer to list, so we were able to make a deal. The negotiations all took place over about a 12 hour period on Saturday, and we ratified the contract Sunday morning.

It worked in their case because we knew our market and the type of buyers who may be looking at our property. We did have to do an inspection, but only a couple hundred dollars in small repairs came up - it was to be expected. They didn't ask for any closing help, which we were happy about - most buyers in our price bracket were asking at that point.

It is very situational, obviously. It never hurts to try to offer and ask them to cancel the open house, but it will have to be a really strong offer. I'd put your best offer on the table up front.

[Anonymous]

We did this in 2001 at the height of the buying frenzy. We offered $25K over the asking price. The buyer accepted our offer and cancelled the open house.

[Anonymous]

In 2010, house went on Market on Monday with OH scheduled for that next Sunday. We saw it on Wed, made offer that night. Had it under contract by Friday.

[Anonymous]

Anonymous wrote:Is this done? What's the downside? We have lost out on multiple competitive bids; I'm sick and tired of this game. Open house is this wknd. Can't we just offer above the list and set an expiration before the open house? Or is that just dumb and any seller would go through with the open house.

When we sold our last house, I was also just so sick and tired of everything, too, that I probably would have totally accepted an above the list offer, all the better if I could cancel an open house.

[Anonymous]

Anonymous wrote:As a seller. I would not accept your offer till open house plus a couple of days. Even if you offer full price.

We've tried to do this with a house we really wanted in a popular neighborhood, but the sellers said the same thing as you. And they were right - we lost the house because the winning bid was 40 thousand over ours. We wouldn't have paid that.

[Anonymous]

I saw mine the day it went on the market. I believe there was an open house scheduled for the following weekend but they had multiple offers before that and chose ours before the open house took place.

[Anonymous]

I think it depends completely on the market. We recently sold our house in a desirable DC neighborhood; it was listed under $800K. Went on market on a Thursday morning, and we had 6-8 visits before Sunday open house. Got a call on Saturday night from our agent saying a buyer wanted to know what our price was to not have the open house the next day. We had an idea--about 5% above asking--but she advised against taking an offer that late, saying it would be risky to try to ratify in time to cancel the OH. Also said she expected big interest at OH. We ended up with four offers, selling for almost 10% above asking.

Guess what I'm saying is: Whether and when you make a pre-OH offer and what you offer really depends on where your market is right now. If you're going to do it, I'd recommend sooner rather than later; it takes time and focus to ratify a contract, and most sellers aren't going to want to do it with less than 24 hours notice.

[Anonymous]

^^^We never expected to get as much as we ended up getting; we didn't do the pre-OH offer because of the stress of trying to get it done on such short notice, not to maximize our price.

Also, we were pretty sure we would sell after first OH, so there wasn't a huge incentive to get it done early; we had already done all the clean up and prep, so not having to have the OH wasn't a big incentive for us.

[Anonymous]

we did it in 2011 as buyers. full price offer that ended the day before open house. they took it. held open house anyway (for backups and bc open houses are more about realtors marketing to others anyway).

[Anonymous]

We just did this less than a month ago. We offered asking price and a nice clean offer. The owners accepted it and cancelled the open house. And now we are moving forward with the sale. It works for all of us!