Trying to Purchase a Home in COVID-19 - Continually Lose Out, with Offers over Asking Price?

[Sandi Bo]

Another vote for letters. 2 short stories.
1) Neighbor's daughter was looking to buy in our area. After several misses (offers not accepted), an elderly man (wife had passed) accepted the daughters offer. It was not even close to being the best offer. But she was committed to staying in the home, living by her parents, sending her kids to same schools she went to. The letter for sure is what got her the house.
2) My daughter just sold her starter home. It has tremendous sentimental value to her (nursery for stillborn baby, was very hard for her to leave). She had something like 8 offers (they accepted offers for 2 days), not all bids were competitive. She ended up comparing 3 that were darn close -- one was someone who's parents live down the street and he talked about raising his family there, another was a realtor that she suspected would rent, a third she suspected would flip it. And, yes, he had an escalation clause, she got significantly more than her offer, was preapproved, he was ready to move in (and she was already out (transitioning to new home and living at ours ) ). Definitely a sellers market, but she did a lot of things to make her house move in ready, pre-inspected, etc. I had never heard of escalation clauses before this, crazy!
Best of luck to @Sugarcubesea! We are all rooting for you!!!

 

[klpca]

I understand and agree. You sold in March, just before Covid changed everything. In that normal market time, it might well make the difference when faced with a situation of "Gee, they're all the same - which Buyer do I want to have my house?" If all five offers we received had been for the same amount, with typical financing details, and if this was a normal market, then yes, the notes might have made a difference. But in this case, the offers were very uneven. The two with notes were attached to at-asking-price offers, one of which was a very weak buyer who likely would have had trouble closing escrow, who also wanted us to pay their closing costs. So at the end of the deal, we'd have netted well below asking for the house. Of the three above-asking offers, (which were all offering the same amount), the one with the escalation clause blew the others out of the water. It was far and away the strongest offer of them all. We gladly accepted that offer. Hoping @Sugarcubesea has a similar experience.

Dave

I had to lol at the "wanted you to pay their closing costs". Maybe in 2010, not now. Btw, we were the buyer in March. I can't believe how much *everything* has changed since then!

 

[Sugarcubesea]

We lost out. They allowed a cash buyer to come into the mix after they had requested all offers in by Sunday. The cash buyer offered $38K over asking, the beneficiaries choose this offer this morning

 

[Panina]

We lost out. They allowed a cash buyer to come into the mix after they had requested all offers in by Sunday. The cash buyer offered $38K over asking, the beneficiaries choose this offer this morning

So sorry, you just can’t compete with a cash offer. I know how disappointing it must be. You will find something when it is meant to be. I still think sell you home and get maximum money for it and rent in between. At some point the market will adjust.

 

[WinniWoman]

We lost out. They allowed a cash buyer to come into the mix after they had requested all offers in by Sunday. The cash buyer offered $38K over asking, the beneficiaries choose this offer this morning

OMG. So sorry. This is crazy town.

 

[clifffaith]

Sorry to hear it didn't work out, I was rooting for you.

 

[Glynda]

Awwwww. So sorry.

 

[heathpack]

Aw sorry to hear this.

 

[nightnurse613]

Yes, the market is crazy. My husband predicts the market will fall out early next year. People who have been staying in houses (courtesy the moratorium) will be out and owners will be looking to recoup or totally avoid that happening again. It is not unusual for houses in Idaho to go for $100K over asking price (and the sellers are not idiots). I would think that, with all the wildfires, people will be making an exodus out of California (again). It was hotter in the Sacramento area a couple of days ago than it was in Phoenix??!! (What? Really!) I hate moving and plan to die in this house (hopefully not too soon).

 

[DaveNV]

That sucks. But cash talks, obviously. Hoping the next deal goes better.

Dave

 

[VacationForever]

Sorry that you lost out yet again. Cash buyer almost always wins even with the same price offer.

 

[rapmarks]

We lost out. They allowed a cash buyer to come into the mix after they had requested all offers in by Sunday. The cash buyer offered $38K over asking, the beneficiaries choose this offer this morning

Don't even try to compete with stuff like this. It is insanity

 

[PamMo]

Well, that news just stinks, Sugarcubesea. It’s got to hurt.

If I lived closer, I’d bring you a bottle of champagne and help you drown the disappointment over this one!

 

[Sugarcubesea]

Well, that news just stinks, Sugarcubesea. It’s got to hurt.

If I lived closer, I’d bring you a bottle of champagne and help you drown the disappointment over this one!

PamMo, thanks, I could use a stiff drink right about now....

 

[Luanne]

I am so sorry you lost out on the house. How frustrating for you. But as others have said it's really hard to beat an all cash offer.

 

[Sugarcubesea]

So sorry, you just can’t compete with a cash offer. I know how disappointing it must be. You will find something when it is meant to be. I still think sell you home and get maximum money for it and rent in between. At some point the market will adjust.

We are just waiting on the carpeting, to be installed, it was suppose to happen last Monday and has now been pushed out to the 17th from Lowe's...Once that happens and a few touch ups of the house and then we will list it...

 

[Sugarcubesea]

I am so sorry you lost out on the house. How frustrating for you. But as others have said it's really hard to beat an all cash offer.

I just talked to our financial planner and he said even if I pulled cash out of my CD's he could not in good conscious recommend me to pay $38K over asking for a small 2 bedroom ranch site condo. This just gives us a bit of extra time to get our home listed

 

[Sugarcubesea]

I am hoping that you wrote a very personal note to be presented to the seller (when your offer is presented). Sometimes a nice gesture may balance the scales in your favor when there are close multiple offers.

It's your turn to win this battle!

Best of luck!



.

In this market, money talks, the sellers are not interested in a personal note. We wrote a nice letter the first few times and the listing agents on those homes told our realtor that their sellers did not even read them they just wanted to know who had the best offer...

 

[Sugarcubesea]

As a Realtor in NJ, I do not instruct Buyers to write a personal note and ask Sellers not to let it sway their decision if one is presented with an offer.

Too many opportunities to discriminate and violate Fair Housing regulations.

Maria

This was actually the advice my realtor gave me and I still insisted on writing notes for the first few offers we put in. I think at this point we will put our house up for sale once we get the new carpeting in and sell for high dollars, rent and wait till the market cools off...

 

[Sandi Bo]

So sorry you didn't get the house. I like the idea of selling your current one (pondering that myself). It'll all work out, just sucks right now.

 

[rapmarks]

I have been cleaning out my Wisconsin house. Omg why did I save these things? I have received nice notes from people that wanted my free hot tub, but they never showed up

 

[bogey21]

The consensus view seems to be that the RE Market is overly hot and will revert to normal. That may be correct but I wonder if some who are converting cash into Real Estate, or are taking advantage of low interest rates, are concerned about the ballooning Federal Deficit and believe that Real Estate is a better store of value than cash much like those who swear by gold and silver...

George

 

[dsmrp]

This was actually the advice my realtor gave me and I still insisted on writing notes for the first few offers we put in. I think at this point we will put our house up for sale once we get the new carpeting in and sell for high dollars, rent and wait till the market cools off...

So sorry you didn't get the last place.
Yes best at this point to wait until the market cools off. A lot can happen in 6 mo - 1 year.
6 months ago we were all starting to hear about Covid in the US.

 

[sail27bill]

So sorry Sugarcubesea. I was rooting for you to get this house. Now I am sending positive thoughts to you that your house sells quickly and for a good amount of money so your life plans can become a reality. Hang in there. The perfect place is out there just waiting for you to find it.

Best,
Anita

 

[rickandcindy23]

So sorry you lost out on that house. Something better is coming your way. That house was not supposed to be yours. I know, I know, that sounds so empty, but I am hoping it's true.