short window offers do you guys do that?

Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes

I listed a single family house for sale today at $229,900. It’s a hot market here in Houston Texas. I priced it middle of the pack, it’s upper 10% in condition, trying to start a a bidding war. Got a cash offer of $230k in less than an hour, but they want an answer by midnight tomorrow night. Am I crazy if I don’t answer, by then? Or tell them to submit their best and final?

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Steve K.

Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes

Sounds like you priced it right to get multiple offers. I would let it go through the weekend, and if you have several offers by Sunday night, give them all one more chance to improve their offer to their "highest and best". The way the market is working lately, properties are being listed on Wednesday or Thursday, with an offer deadline by Sunday night (or Monday at noon). This way folks have a chance to look and do their DD. It doesn't benefit you to accept an offer with a quick acceptance deadline if there could be other higher offers coming in.

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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
Update - got a second offer before realtor lady got the sign in the yard.
1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
@Steven Westlake for how much? Don’t get greedy. Accept the offer
0 Reply
Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
4y
The choice is yours. If the market is that hot, generally speaking the buyer won't go away (no guarantees of course).
You have the leverage so you can send out a multiple counter offer. That should also buy you time for more offers. If it were my client, I would put the disclosures together as quickly as possible and present with the counter offer and have the buyer release that contingency. This way literally the only contingency for the buyer would be inspections.
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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
@Bud Gaffney both were for $100 over asking, i have seen these guys get you locked up fast, then try to beat you on the price after other folks went away. I had had an inspection done upfront, hoping to avoid this beat up after the inspection crap.
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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
@Rick Albert- i like the release the contingency idea. I had an inspection done hopefully to avoid this run a roundabout game.
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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
4y
Have a family home being sold presently and in the listing it stated a date that the offers would be considered. It's under contract now. (the offer consideration date was about 5 days from the listing date)
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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
Fyi, we bought this house for $93k in 2009, put maybe $30k in it since then. It’s our personal home.
1 Reply
Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
@John Teachout - i like that plan
0 Reply
Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
4y
Sounds like you priced it right to get multiple offers. I would let it go through the weekend, and if you have several offers by Sunday night, give them all one more chance to improve their offer to their "highest and best". The way the market is working lately, properties are being listed on Wednesday or Thursday, with an offer deadline by Sunday night (or Monday at noon). This way folks have a chance to look and do their DD. It doesn't benefit you to accept an offer with a quick acceptance deadline if there could be other higher offers coming in.
3 Reply
Jeff Campbell
Investor · Heber Springs, AR · Member since 2019 · 88 posts · 38 votes
4y
@Steven Westlake it seems like they are just trying to get you committed. I would hit them with there best and final and see what happens. If they want they’ll buy it later.
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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
4y
A short window to me seems like they're concerned someone else is going to come in higher. If even the potential buyer feels that way, then maybe waiting a bit may be wise. On investment properties, we sometimes put a short window on offers so we can continue to make offers on other properties. It doesn't stop us from going back and buying that rejected offer property if the sellers change their mind, it does prevent us from having multiple valid offers out there with the risk that two could be accepted.
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Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
Good call, @Steven Westlake Be sure to keep us posted on what you decide to do, and the outcome! Cheers to a favorable and LUCRATIVE outcome for you and yours :)
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Account Closed
Rental Property Investor · Denver, CO · Member since 2019 · 78 posts · 66 votes
4y
@Steve K. Totally agree
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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
Update-2 sets of folks asked to walk through today while we were loading furniture, both said they were going to put in offers.
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Matthew Rolf
Insurance Agent · TX · Member since 2018 · 362 posts · 175 votes
4y
@Steven Westlake I definitely would wait through the weekend. You can let them know you need to wait until Sunday for reasons X, Y, Z. I doubt they would pull the offer, they know there will be competition and that's why they are using that tactic. What do you think it will appraise for? The appraisal waiver is another thing to consider when evaluating offers (cash vs financed).
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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
@Matthew Rolf-the tax appraisal is $228k,
we used the move to ohio as the reason for not looking at offers until Monday
FYI, we got the semi loaded today about 5:00 pm, and just checked in in Texarkana motel. That’s just over 300 miles north of Houston, and 59 is a terrible road.
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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
4y
Say "multiple offers have been received, we are asking for highest and best by (insert sunday evening)". Even if they offered a million dollars with an inspection its still far from a sure bet. Let the market dictate the price and wait a few days for the best offer. Don't panic. That "cash offer" person has plenty of cash (usually) and is doubtfully not still going to be in play 2 days from now. Just my 2 cents.
[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
4y
Originally posted by @Steven Westlake:
Fyi, we bought this house for $93k in 2009, put maybe $30k in it since then. It’s our personal home.

That's irrelevant to the fact of getting top dollar for your asset. Remove emotion from the negotiation.

[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
4y
Originally posted by @Steven Westlake:
Update-2 sets of folks asked to walk through today while we were loading furniture, both said they were going to put in offers.

Tell everyone that "a waived inspection is our preferred offer" and have everyone preinspect the property prior to submitting offer.

[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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Steven Westlake
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Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
@Marc Rice- I’m as unemotional as possible, maybe it’s the 30 plus years in engineering. Was just giving beginning price for newbs still studying.
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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
FYI 5 offers now.
1 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Originally posted by @Steven Westlake:
I listed a single family house for sale today at $229,900. It’s a hot market here in Houston Texas. I priced it middle of the pack, it’s upper 10% in condition, trying to start a a bidding war. Got a cash offer of $230k in less than an hour, but they want an answer by midnight tomorrow night. Am I crazy if I don’t answer, by then? Or tell them to submit their best and final?

If its hot then you'll have many offers within the first day.
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Matthew Rolf
Insurance Agent · TX · Member since 2018 · 362 posts · 175 votes
4y
@Steven Westlake just curious, did that cash offer win the day?
Usually the tax appraisal is quite a bit lower than what it will actually appraise for when looking at market value.
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Tim Miller
Rental Property Investor · Laurel, MD · Member since 2016 · 383 posts · 382 votes
4y
They are trying to get you to agree so the prices doesn't go higher. If your market is HOT, I'd tell them, Thanks for your offer but we will make our decision Monday after all Highest & Best offers are submitted. Don't get pressured into selling. Good Luck!
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Steven Westlake
OP
Developer · Bellefontaine Ohio · Member since 2016 · 373 posts · 219 votes
4y
@Tim Miller _ here’s how it it ended up going down. Top bid was 237k. I decided not to go with any of the cash offers, assuming they were investors, who would try to reNegotiate later. I even stipulated the price could not be altered by a later inspection as i had one done and it was provided to everyone. I suppose I’ll see if that flys.
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