Seller Received a Competing Offer

11 Replies

I put my first offer in on Friday afternoon. Finally heard back from my realtor last night that the sellers received a competing offer over the weekend. According to my numbers, I still have about $5,000 wiggle room to make the deal worthwhile, but I can't shake the feeling that I may be negotiating against myself. Do I up my offer? Or stand pat?

It’s like playing way to know until you do it. But, if this is an REO, I’d probably stand pat, as many REO policies are to automatically send this to Any offer rec’d.

Offer another 1K and walk away if they do not accept other wise you will end up in a bidding war.

It also depends on the strength of your offer.  Are you all cash, no contingency, 14 day close?  If so you may still be the choice over a finance or other type of contingent offer that is higher than yours.

How long was the property listed? Is this a rental or  flip? Is your market hot? I get that response on 100% of the offers I make, and 100% of the time someone pays more for it. Roll the dice on standing firm or come back with your "best and final".

Personally I would rather LOSE a deal that I put my best offer in on, then LOSE a deal where I had $5000 more to make the deal my deal. If you hold firm and lose and find out the deal sold for $1000 more than you offered... you really lost out, IMO.

@Wayne Brooks Thanks very much. This is not REO, but an estate sale listed on MLS.

@Thomas S. I certainly don't want a bidding war. Thank you for the advice.

@Paul Bowers The offer is all cash, but I did ask for an inspection. I'll make sure my realtor emphasizes my ability to close quickly, though. Thank you!

@Brian Pulaski You made some really good points. Thanks for that. It hasn't been listed for very long--12 days--and we are trying to flip it.

In the end, I think I will up my offer because I'd rather have a (little less of a) good deal than no deal. Fingers crossed!

if you REALLY think you are competing against yourself and if you put in your offer with the listing agent, which I HIGHLY recommended for many reasons, I would tell the agent never mind on that offer, but I do want to put in an offer listed by another agent can I do that now or do I need to wait until my offer expires?

You will then find out if you are bidding against yourself

@Michael Plante I did not go through the listing agent. What are some of your reasons for recommending that? But I do like your proposal. Thanks!

try an escalation clause $500 over the best offer up to $5000  this way you will know the offer is legit 

Originally posted by @Steven Picker :

try an escalation clause $500 over the best offer up to $5000  this way you will know the offer is legit 

 Like Steve Id also suggest an escalation clause. However I do not think $500 is enough unless this is an incredibly cheap property. You want the escalation amount to be enough to offset other better terms the 2nd offer might be offering. For instance if your offer is contingent on a home inspection, financing, and a 30 day close...well then $500 wouldnt come anywhere close to incentivizing the seller against an all cash, no contingencies 10 day close offer.

I love Bigger Pockets! I never would've thought of an escalation clause, @Steven Picker . Thank you! Unfortunately, that idea is a little late for me to implement on this deal (I think), as we will be finding out in about 10 minutes what the seller has decided. But I'll certainly put that in my back pocket for future use. And because @Russell Brazil seconded the motion (with further insight/detail), I'll have it at the ready. So thank you, too!

Hi @Adam Sechrist  

What I would do is offer the initial value of the property, the purpose of obtaining the deal. But put in the contract that the purchase depends on the approval of the loan. Then return to the seller and renegotiate the price, if you pay in Cash.

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