Hello BP community,
I finally submitted my first offer on a rental property! It is a one bedroom one bath condo in DC, move in ready, and furnished. It's a short sale. The condo has been on the market for 310 days and being sold as is. My agent, who is also a RE investor himself, was surprised how well-maintained the unit is. After four days from submitting my offer, my agent got back to me saying that someone had already offered to pay cash and more than the list price.
His response seemed odd to me, why would someone offer cash and pay more than the list price on a property that's been on the market for more than 300 days.
My question is, how can I confirm that this is actually what happened? And is this a legit concern I should have?
I am just a newbie trying to build a relationship with a real estate agent.
Hmm. That does seem pretty weird. I wonder if he also shared this deal with another investor who he works with more often. I am not sure how you can get around this but I would not worry about it. Just go and find the next deal.
The list price on a short sale means nothing. It is typically set artificially low to bring in interest. Almost any short sale in the a tea is going to have offers over asking regardless of DOM.
@Antoine Martel Thanks for your input, I will definitely move onto the next deal.
That's a good point @Russell Brazil , I never thought about that. Thanks!
@Youssef S. You agent should ask the other agent about other offers and depending on the circumstance, you might want to add an escalation addendum to your offer. In DC, most of our clients are dropping most, if not all, of the contingencies in a multiple offer situations. In this case, it is a bit surprising that a cash buyer would come over the top when they property has been sitting so long. Did they just do a price reduction?
That's what I thought too @Dan Bernstein , the last price drop was in March.
@Youssef S. Its pretty rare that a listing agent would not be able to disclose other offers. In most listing agreements, there is a clause that either allows or prevents agents from disclosing multiple offers. Just ask your agent whether the listing agent was communicating. You would be shocked at how some agents refuse to return calls or communicate during negotiations.
@Youssef S. Definitely odd......Assuming your agent is not the listing agent anything is possible. In this case he should have told you that the deal is "SOLD". Now if for some stranger reason he tells you that the deal is still available and asking you to increase your price, you may want to lose that agent as that sounds a bit shady. All the best to you.
@Youssef S. Since short-sales are subject to third party approval, your agent is probably just letting you know that the other offer has been submitted and they are waiting on bank approval. I wouldn't doubt your agent absent some other reason to do so.
You never know the answer. Next deal.
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