Anonymous
Post 05/21/2014 11:52     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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.


OP here, but the true dynamic is that everyone has a range they are willing to pay. I've been pushed to the top of my range by this alleged "other bidder" and am know wondering if its true competition or a scam. I haven't yet put in a binding offer so can still walk away. Not in immediate DC metro and my area is not as hot. Some properties sit for weeks, especially in higher price ranges, and others in the same range get multiple offers first day. This property has been on the market for several weeks (and all of last season, fsbo, now with an agent) and even with this other bidder we are still several hundred thousand below asking (million plus property). I'm just wary of overpaying.


So don't. Look at comps and make a fair offer you are comfortable with. Sellers can always counter.
Anonymous
Post 05/21/2014 11:51     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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.


OP here, but the true dynamic is that everyone has a range they are willing to pay. I've been pushed to the top of my range by this alleged "other bidder" and am know wondering if its true competition or a scam. I haven't yet put in a binding offer so can still walk away. Not in immediate DC metro and my area is not as hot. Some properties sit for weeks, especially in higher price ranges, and others in the same range get multiple offers first day. This property has been on the market for several weeks (and all of last season, fsbo, now with an agent) and even with this other bidder we are still several hundred thousand below asking (million plus property). I'm just wary of overpaying.
Anonymous
Post 05/21/2014 11:48     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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.
Anonymous
Post 05/21/2014 11:47     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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.


I think PPs concern is that you would bid say, $10K below list if you thought there were no other offers but would maybe bid list price or a little less if there were competing offers. Presumably this could be resolved with an escalation clause to the max amount you would be willing to pay.
Anonymous
Post 05/21/2014 11:44     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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.
Anonymous
Post 05/21/2014 11:41     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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.
Anonymous
Post 05/21/2014 11:37     Subject: Re:Can Potential Buyer Ask for Proof of Other Offers?
I believe (and you should talk to your agent about this), that once the deal is complete you can ask to see all of the offers. There's a way to protect yourself from an agent just running this as a scam. You really need to ask your agent -- that's why you have an agent!
Anonymous
Post 05/21/2014 11:33     Subject: Can Potential Buyer Ask for Proof of Other Offers?
This is where your agent should be able to assist. If there are likely to be other offers in the range where you bid, the best thing to do is put a very short fuse on your written offer (24 hours works well, or 12 if you've been talking for a few days.) If there are other offers, they will not accept and either counter or let you counter, or walk.

There isn't anything unethical about this...although the better agents are better at playing the game. This is how 90% of business is done.
Anonymous
Post 05/21/2014 11:30     Subject: Can Potential Buyer Ask for Proof of Other Offers?
I hate when agents pull this scam. We aren't gamblers and it has caused us to walk away from houses. We didn't want to feel like we were in a high stress situation. It's mental I know, but we move slow like turtles!
Anonymous
Post 05/21/2014 11:28     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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.
Anonymous
Post 05/21/2014 11:28     Subject: Can Potential Buyer Ask for Proof of Other Offers?
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!
Anonymous
Post 05/21/2014 11:25     Subject: Can Potential Buyer Ask for Proof of Other Offers?
What difference does it make? Why do you want proof?
Anonymous
Post 05/21/2014 11:25     Subject: Can Potential Buyer Ask for Proof of Other Offers?
I would like to know this too! I think it's a scam real estate agents pull. Twice now I've had "other bidders" but they never seemed to bid against us? So weird.
Anonymous
Post 05/21/2014 11:24     Subject: Can Potential Buyer Ask for Proof of Other Offers?
Why would you want to? I mean, if you want the house make an offer?
Anonymous
Post 05/21/2014 11:23     Subject: Can Potential Buyer Ask for Proof of Other Offers?
In a situation where there is allegedly another interested buyer, but neither us nor them has submitted an official offer. Other party has allegedly put their proposed offer terms in an email to the seller. Do we have a right to ask for proof of other offer?