Bidding asking price to lock in???

4 Replies

All,

Tomorrow I'm going to see the house in the location, location, location i've been looking for.  They are asking "right on the money" market value.

Question is, if you think it's going to be a 1 day sold and possible bidding war, how would you lock in and then work the numbers once the appraiser/contractor gets in there?  The place looks turn-key, but i'm sure it's got some issues...most do.  I'm thinking about offering their price, or even a few grand higher to lock it in and then negotiate down if/when the appraiser/contractor get in there, etc...I used to be a contractor so i'll be able to see the issues most likely while i'm looking and feel out the owner as he'll be letting us in.

Please let me know your strategies as I'm going to most likely make an offer tomorrow evening on it if all goes well.

Thanks,

Johnny

Don't hold your breath.

If the property is located in an ideal area, is considered turn key, and is expecting many bids - be careful.  Trying to tie up the property only to negotiate on it may be only time wasted. 

While you may have the property in escrow, I'm sure, per what you said, many other offers will be on the table. If you do not perform, they'll just move on. Just because you ask for repairs, does not mean they have to comply. 

I would say, try to negotiate opening escrow on a number you are comfortable. After, try to raise awareness of issues, and if credits are not granted, or price isn't reduced, you still buy. 

Sometimes there is no room to negotiate, and only trying to do so is a waste of resources.

Good luck!

Agreed, agents know this game well.

all depends on your local market and interest in the home.  I am a Realtor and investor.  Yes most agents know the game. Can't usually pull that move.  To be aggressive in this market in SF buyers will sometimes pay for and have property inspections before an offer date so it can be non contingent

So, went and looked at it....needs about $25k to get it up to par.  Numbers don't work well even at a discount, but the place was a revolving door all day today (4 different people looking at it in the hour I was there).  Would be a GREAT owner occupied!  Dang...oh well.  Thanks everyone for your help!

Johnny

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