I had my eyes on an apartment in a multi-unit apartment building since it make in the market more than one half years ago.
It has been in the market since, 2 agents down and price reduction 7 times I felt it’s finally the time to approach and make an offer.
I didn’t not have an agent so I agreed to use their agent as a dual agent and she told me she won’t take any offers to the seller unless the buyer is serious and has it in written. So I agree and sign all the documents and send it Friday by noon.
BUT, after about 3 hours, I get an email from her about the multiple offer situation and how surprised she is. It always happens like this. So the seller has told her only to bring the highest and the best offer.
So the “dual agent” is asking me if I want to reconsider my offer price??
What I am surprised is what are the odds that the second offer happened the same day I make mine after a year and half.
If she is my agent too , doesn’t she have more responsibilities than that?
I did make a lowball cash offer, 10%less of listing .
Somehow it got posted before I could finish.
Anyways, please throw me your thoughts. I don’t want to start a bidding war and some thing tells me I am being played. I know this unit is worth the value I have offered or the middle ground between offer and listed.
Thank you in advance.
First of all, this happens all the time. I recently wrote an offer for a client on a property that had no written offers for over 30 days. They got another offer at the same exact time. This can happen because there are other buyers who are thinking similarly to you. It can also happen because any good listing agent, who knows they are getting an offer, should be calling every person who ever expressed interest and letting them know they have an offer.
You don’t get as much benefit as many people make out by using the listing agent. If you’re very experienced and don’t need detailed advice about every aspect of the transaction, use the listing agent. If you need advice on how to respond to this multi offer situation, you probably should have used your own agent. At this point, decide what makes sense as far as the numbers go and stick with that. If it doesn’t make sense above your original offer, stick with your original offer.
To begin with. I would NEVER, and I mean NEVER(never, ever, ever, ever.....did I mention ever?....EVER) use a dual listing agent. In my opinion it is one of the biggest mistakes I see people make. Remember the big screen ? When has anyone been able to trust a "double agent" ? Therefore, how can you ever expect a Dual Agent to work in the favor of a buyer?
Remember that realtors make their money on commissions(Buyer and Seller agents split the commission) - The higher the sale price, the more they make. Now in this case, a dual agent gets *all of the commission*, so this is akin to a 2x bonus. Of course they want the highest offer, and when they get it, this makes the Dual Agent *very happy*. As such, they are more likely to milk the process for every last dime and recommend that the seller decline even reasonable offers and then respond with the tagline "Only put forth your best and highest offer". This is a psychological tactic in an attempt to make a buyer overpay. Only suckers overpay.
I personally feel that dual agency should have been banned a long time ago. But, I digress.
When I make an offer, I almost always put my best offer in and am prepared to walk away. In very rare situations(where I place a low-ball offer), I always have a "final" number that I stick to. You should do the same.