I was the highest bidder on a property. Modest 3 br 1 bath. I over bid a little and was pretty happy I was able to get an inspection before the contract was in my hand. Overall, inspection estimates about $15000 in repairs. Not the worst I've seen for sure but didn't realize during initial viewing. Some roof leaks, electric pole issues, deck needs to be removed aND rebuilt, an additional steel beam to be placed in the basement crawl for additional support and the electrical panel needing to be grounded...among other issues that are minor to me. My agent said don't sign the contract and he will try to negotiate. I'm thinking from a leverage perspective I should sign and negotiate then. That way the seller can't jump to the other offers. They are motivated sellers and i can close quick. Not sure what to make of the situation. Opinions?
No contract means you have no control. I would sign and then amend the contract during due diligence.
I would negotiate the deal first and then proceed with the contract once the price is ironed out.
Without a signed contract they can sell to anyone. I would make an offer but offer what you are willing to pay (repairs considered). Maybe start a little lower and then come up some if you need.
@Tom Liu ,
What kind of bid was it? Was it an estate auction, sheriffs auction, HUD sale? That will make a difference on what you can do.
Appreciate all opinions so far. It's an estate sale. The family motivated to sell quick. I obviously don't know what the other bids are but I bid about 3% higher than listing price. My agents thought is why go through all the legal issues of a contract, deposit, etc. If we can't work out a reasonable deal. My goal is around half of repair costs but I just worry without a contract then they could just go to another seller.
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