Realtor Question from Buyer POV

[Calvin Watkins]

Hello All!

I have a strange question (at least I believe so) in regards to price negotiations between cash buyers. I am currently in negotiation for a property from the MLS with some hidden value that I believe I can capitalize on once purchased.

I am a cash buyer and submitted an offer through my realtor for the house under the asking price. The day I submitted this the seller realtor stated another offer with a cash buyer appeared which I found strange but not unheard of. My realtor told me that the seller's realtor stated the buyer is offering full price for the location. I had my realtor add a continuation clause to my contract which would offer $1,000 above all proven offers. I submitted this along with proof of funds and was met with a call after the contractual offer date expired that the seller's realtor talked to the other buyer who had proof of funds but for us to purchase the property we would have to up the offer and remove the continuation clause because the other buyer doesn't have a realtor so the buyer fee is not present and it is better to go with the other seller. 

All of this seems questionable operationally after the continuation clause was added and the fact that the other offer is only verbal without anything written. I don't believe the other offer is real due to them requesting the continuation clause being removed.

Am I foolish for doing this as upping the buy price still makes it a good purchase but it makes my margins very slim. I believe the operator is trying not to break any rules but also strong arm the price up but I am still newer to this so I wanted to see if anyone else has any advice on this.

Thank you!

[Nathan Gesner]

First and foremost, the property is only worth what it's worth to you. Know your numbers and stick to them. If it doesn't work out, there will be another deal to come along. 

Second, your offer already expired so it shouldn't be on the table any more. You'll need to submit a fresh offer.

Third, the other offer is verbal which means it is not an actual offer. I would tell them to call me back when they have a written offer and can provide proof. Then I would consider increasing my offer. Until then, I would only negotiate verbally to see if I could lock in an acceptable purchase price. You will always have the change to rescind the offer before putting it in writing.