Put a Offer in on a House Yesterday --- Competing against 5 Other Offers

[klpca]

Sorry about this. I think that all of TUG really wanted you to get that house! That said, I agree with the others that your negotiating power will be greatly increased once your house is sold. Keep us posted!

 

[rickandcindy23]

So sorry you missed out on that house. It's a seller's market like that in CO, even after the pandemic. I am surprised. I know we can get $335K for our townhouse, if we sold it today. Last year, the most we could have gotten was $290K. We had no one living there for a year, so it's interesting that just sitting, it's increasing in value like that.

 

[PamMo]

Sorry about this. I think that all of TUG really wanted you to get that house!

So true! I checked in on this thread several times yesterday afternoon to see if you got it, and felt so bad when you posted it went for $16K over list.

I'm sure you're disappointed, but you're also realistic and resilient. This has been an insane year. We're looking to buy in a couple of areas (AZ and NV), and prices fell a bit (and then sold under list) due to coronavirus, job losses, and volatile financial markets. I've bought homes before without seeing them, but this was a weird market. It's interesting to see how once states started to open up from the lock down, activity and prices have jumped! There's a pent up demand from an apocalyptic spring, helped along by low interest rates. Hang in there. We've been buying and selling for awhile, and there's only one property that we felt like was the "one that got away." Otherwise, we just moved along and bought something else that worked out great.

Think of this as a temporary sidestep to reach your goal of getting to your dream retirement home!

 

[Brett]

When I sold my Son's house last year, based on all the Internet sites (Zillow, Redfin, etc.) I felt that $175 to $180 was market. Because the house was empty and inconvenient for me get to I hired a Realtor who insisted that I list it for $190 where it sold. Not only did he have a good handle on the market but when Buyer's inspection turned up a number of minor things that needed to be addressed, Realtor had a stable of very reasonably priced fix-it contractors that took care of all the items within days. Rarely do I hire professionals (lawyers, accountants, etc.) but in this case I have to admit that the commission I paid the Realtor was worth every penny...

George

that's what I want - a good realtor

 

[Roger830]

I suspect that we could be seeing a bifurcated market where some types of properties increase in value while others decrease for various reasons.

Low price houses in demand because of low interest rates whereas high price houses decline because of resistance of banks to issue jumbo loans in unsettled economic times.

Houses in areas deemed safe increase in value while troubled areas decline.

Vacation houses increase in value because of increased demand due to risks in traveling.

In our town the population doubles in the summer. Out of 103 listing, 27 are contingent. Very unusual considering the economy.

06475, CT Real Estate & Homes for Sale | realtor.com®

Browse real estate in 06475, CT. There are 51 homes for sale in 06475 with a median listing home price of $769,900.

www.realtor.com

 

[Sugarcubesea]

Whenever I am trying to buy or sell something I try to offer a deal the other party can't refuse. My philosophy is that in the long run it will all work out and a few thousand dollars extra to get the deal done is money will spent or foregone. But there are limits. Assuming the asking price was close to market even with my way of thinking I agree that $16,000 over asking was insane...

George

George: The asking price was about $12K over what had sold i
in that lake in the last 6 month’s.

 

[bogey21]

Wow, and it sold for $16K over that!!!

George

 

[Brett]

I suspect that we could be seeing a bifurcated market where some types of properties increase in value while others decrease for various reasons.

Low price houses in demand because of low interest rates whereas high price houses decline because of resistance of banks to issue jumbo loans in unsettled economic times.

Houses in areas deemed safe increase in value while troubled areas decline.

Vacation houses increase in value because of increased demand due to risks in traveling.

In our town the population doubles in the summer. Out of 103 listing, 27 are contingent. Very unusual considering the economy.

06475, CT Real Estate & Homes for Sale | realtor.com®

Browse real estate in 06475, CT. There are 51 homes for sale in 06475 with a median listing home price of $769,900.

www.realtor.com

I've also been told condominiums are not selling because of coronavirus / pandemic concerns

 

[VacationForever]

I've also been told condominiums are not selling because of coronavirus / pandemic concerns

... because of sharing same elevator and common area space????

 

[Brett]

... because of sharing same elevator and common area space????

yes

(I'm selling my mother's condo in Northern Virginia)

 

[Patri]

A neighbor's house went on the market last Sunday for $25k over what they paid two years ago. It sold for more than the asking price. I was shocked. So it is a seller's market for sure.

 

[PamMo]

A neighbor's house went on the market last Sunday for $25k over what they paid two years ago. It sold for more than the asking price...

That would be underperforming in Reno, NV these days, and several other markets, I'm sure. I had a house that doubled in price in 16 months, and we didn't do a damn thing to it. I hate markets like this. It is too disruptive to homeowners who have a stake in their communities. Investors and speculators gobble up inventory.

 

[bbodb1]

That would be underperforming in Reno, NV these days, and several other markets, I'm sure. I had a house that doubled in price in 16 months, and we didn't do a damn thing to it. I hate markets like this. It is too disruptive to homeowners who have a stake in their communities. Investors and speculators gobble up inventory.

..and one day, that bubble bursts.
We were in Minnesota when the last housing bubble burst and it was not a pretty sight. Some nice houses essentially abandoned and fell victim to squatters.

 

[PamMo]

Exactly, bbodb1.

 

[TravelTime]

In the Bay Area earlier this year, homes were selling for $200,000 or more above asking. We had put in an offer for one house for $245,000 above asking and we lost out buy a few thousand. When Covid hit, the market stopped for about a month and now it is moving again. I am tracking some homes now and they are selling for closer to asking, although some of the desirable homes are still selling about $50,000+ above asking. It seems to have cooled down around here but not by that much. We had a home pending that we were planning to buy but it was right when Covid started and we got scared and backed out. Now we are in wait and see mode. Prices are still very high but seem to be less than pre covid. I think the multiple offers and crazy over bidding might be coming back but it is too early to tell.

 

[WinniWoman]

In the Bay Area earlier this year, homes were selling for $200,000 or more above asking. We had put in an offer for one house for $245,000 above asking and we lost out buy a few thousand. When Covid hit, the market stopped for about a month and now it is moving again. I am tracking some homes now and they are selling for closer to asking, although some of the desirable homes are still selling about $50,000+ above asking. It seems to have cooled down around here but not by that much. We had a home pending that we were planning to buy but it was right when Covid started and we got scared and backed out. Now we are in wait and see mode. Prices are still very high but seem to be less than pre covid. I think the multiple offers and crazy over bidding might be coming back but it is too early to tell.

I can’t even grasp these kinds of numbers. You need big money/ income for these homes. Our little home cost $274,400. Lol! That was all we could afford after factoring in moving costs, closing costs, expenses to fix up the house, etc. Our former home sold for $317,000. We just have a little $ left which might go to a whole house generator- undecided. And we will still need a few more things done in future years.

 

[PamMo]

Back to Sugarcubesea, I hope the buyer who beat her out of the lake cottage is going to live there, and not turn it into an AirBnB.

 

[bbodb1]

Back to Sugarcubesea, I hope the buyer who beat her out of the lake cottage is going to live there, and not turn it into an AirBnB.

Oh - just ouch. That would turn insult to injury.....

 

[bbodb1]

@TravelTime - if I did not already know that you and I frequent very different places, your post on housing prices above just confirmed it.

We own a 2350 sq ft house built new in 1997 - we are the original (and only) owners. We did do an extensive remodel of the kitchen, both baths, and living room last year.
4 bedroom, 2 bath, 2 car garage, formal d/r, about 3/4 acre, with inground pool and in a smaller town....
We purchased this house new -in 1997- for $___,___
And it recently appraised for $___,___

Shall we play a game?

Care to make a guess on the blanks above?

I'll just say now this will go a long way to showing you how far apart Arkansas is from the larger urban areas.

 

[TravelTime]

@TravelTime - if I did not already know that you and I frequent very different places, your post on housing prices above just confirmed it.

We own a 2350 sq ft house built new in 1997 - we are the original (and only) owners. We did do an extensive remodel of the kitchen, both baths, and living room last year.
4 bedroom, 2 bath, 2 car garage, formal d/r, about 3/4 acre, with inground pool and in a smaller town....
We purchased this house new -in 1997- for $___,___
And it recently appraised for $___,___

Shall we play a game?

Care to make a guess on the blanks above?

I'll just say now this will go a long way to showing you how far apart Arkansas is from the larger urban areas.

I have no idea about your game but given it is in Arkansas, I would guess prices are now in the $200,000 range for a 4 bedroom home. I would guess you paid half of the current appraisal price. How far off am I?

 

[bbodb1]

I have no idea about your game but given it is in Arkansas, I would guess prices are now in the $200,000 range for a 4 bedroom home. I would guess you paid half of the current appraisal price. How far off am I?

That's pretty close - well done!
'97 purchase price was $128k
Recent appraisal was $230k.

It is mind blowing the cost difference in housing throughout this country. When I hear the prices people pay for houses elsewhere, I don't see how they can afford them (and in too many cases -sadly- they cant). If I could magically transport my house to the Bay area, I suspect it would be greater than $1 million...especially given our lot size.

I guess the saying is true - real estate is all about location, location, location!

 

[bbodb1]

And @TravelTime - the game reference was from a movie.....

 

[Panina]

I can imagine how disappointed you are. I didn’t get the house I initially wanted and settled on the one I got. Ultimately life took me where I was suppose to go. I love this house.

You will find the one that was meant for you.

 

[TravelTime]

Our realtor just called. A total of 7 offers were made on the house. We offered $6K over asking and we lost out. The listing agent told our realtor that the winning offer came in $16K over asking. To me that is insane.

Our mortgage broker pulled the data when he wrote up our mortgage approval letter to accompany our offer. He stated to me that the home might come back on the market because if it does not appraise that high, the folks buying it might not be able to get the mortgage.

I’m so bummed and sad that it became that much of a bidding war.

I am sorry you did not get the house. It had a gorgeous lake view. I was cautiously optimistic for you but can see you had a lot of competition with so many bidders. We lost a house pre-covid that had many offers well over asking. Now I am glad we did not get it because I can see the timing was wrong. We dropped out of another house right as covid was starting due to fear and uncertainty. I still do not regret that even though we lost our deposit. The right house will come for you and you will get it. Maybe after the spring selling season, prices will come back down again and you will get a great house at a good price. I still think there Is too much economic uncertainty and I am surprised the housing market is still going strong. Our realtor predicted this because she said there is high demand for limited inventory.

Next time you see a great house, you may want to make your opening bid your best highest offer and ask your realtor to ask the selling agent if you can have a chance at a second offer if you do not come in high enough. This is a stressful market to be in and you will always wonder if you paid too much. But this way, you can make your best offer first without overbidding and then add more if you are not high enough. They do this a lot in the Bay Area when there are lots of bidders. It is a win-win for the seller and the winning buyer but not so good for the original highest bidder who can get outbid in the end. They only do this if they have at least 6-7 good strong offers because some buyers will drop out in the second round.

 

[WinniWoman]

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