Reply to Escalation conspiracy?

Forum Index » Real Estate

Reply to "Escalation conspiracy?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We just bid on a property and provided an escalation clause that went up over $250k over ask. There were five total offers, and apparently none of them got to the price "the sellers were hoping for." We had the highest cap, but they refused to show us where the escalation landed based on the next best offer. Instead, they countered with "a number they would feel comfortable with." While that number was slightly under our cap, we were unwilling to engage without receiving documentation showing where the escalation ended, and they didn't want to show their cards. Deal fell through because of ridiculous games on the part of the listing agent. They claim they got another offer to "come up" and are ratified. Listing agent told our realtor that "we would be disappointed," but the listing is still active on MLS. Total insanity. Buh-bye![/quote]

This sounds pretty standard.  Agents use an escalation to counter.  You have basically showed your hand.  Good for you for not backing down.  Most buyers do.  [/quote]

Is it standard to have the sellers/listing agent ask you to bid against yourself? Because that is what they were doing. The market spoke with 5 offers and the sellers were delusional about what their house was worth (perhaps sellers remorse is settling in now). Trying to extort me for more money and not provide any information about where the other offers landed is not ok. And the sellers wrote a letter trying to tell me that they really *wanted* to sell to us, but that we should counter them blindly with a number with no data to inform our decision. Nice try -- I'm not falling for it.[/quote]

Yikes. Your bid with escalation may already be above market (because it’s the highest bid), and they’re trying to manipulate you to pay even more. Good for you for not backing down. [/quote]

Thanks to everyone who wrote back saying we did the right thing. Unfortunately, these insane tactics work because there's usually someone who falls for them. Update: We were informed that the sellers/listing agnet got another offer "to come up" and they were ratifying. Listing agent had the nerve to tell our realtor that "your clients will be disappointed." Truth is, I'm not disappointed. I'm insanely annoyed that they wasted that much of my time (and money for pre-inspection) just to try and extort me for more money than market value. It is a completely reasonable ask to see the next best offer's number, and their refusal to show it just tells me they were lying about how "close" it was to where they "felt comfortable." Whoever took the bait and went under contract on this one is really not paying attention. They also scheduled a closing for mid-July when this house in the third year of tax assessment in MoCo and they won't have enough time to claim homestead deduction to be shielded from a huge property tax jump (need to be there for a full fiscal year which would require closing by the end of June). Duh.[/quote]

While I agree on to your position and i think it was smart of you to not go higher, i disagree on the "extort" connotation, it is negotiation and asking for more money is a negotiation tactic, nobody should take it personal, it's not extortion.. Feel free to walk away but this is capitalism at it's best.

When your ask for more money on a job offer are you extorting the employer? No, and neither is this. Don't cry, it's not a good look.[/quote]

Definitely not crying. Instead of using the term extort, let's say begging for additional cash while still standing to walk away with almost a million dollars after the market has spoken is not a good look. The obviously have the right to try but doesn't make it an ethical or good faith effort at negotiation. Who wants to deal with people like that?[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics