Multifamily investment in New Jersey
Gave an offer 90K above asking and still our offer was not accepted ? Am I missing something here.
Loan type: we gave both FHA and conv.
Location : Union, NJ
did you waive inspections. Does your agent have the relationship with listing broker.
NJ is ****ing crazy right now. If they said no, you didn't have the strongest offer. You can offer more money next time, waive inspections, etc. "Above asking" is irrelevant when every offer is above asking and some people are listing their property below expected sales price to drive more traffic.
Hey @Joval Mathai Thats a really good offer. But just because an offer is the highest doesn't mean it strongest. There are a lot of things that you can do to make an offer stronger but with out knowing the situation I would guess this is what happened. The listing agent referenced her comps and saw that your offer was lets say $70,000 over what she thinks it would appraise for. In this scenario if someone offered $30,000 over asking with a $10,000 appraisal gap that offer would net the seller more money and be a stronger offer. Its really important to know why the seller is selling the property. If they are just selling to get top dollar they might be more willing to gamble and hope it appraises for higher and they are ok with having to go back on market. If they have a time line Then a lower offer that is more secured and has less chances of falling apart would be more enticing. Hope this helped!
Quote from @Damian Smith:
did you waive inspections. Does your agent have the relationship with listing broker.
NO we didn't waive inspection. Nope.
Quote from @Andrew B.:Yes this is exactly happening now in NJ. Looking to figure out ways to give a strong offer.
NJ is ****ing crazy right now. If they said no, you didn't have the strongest offer. You can offer more money next time, waive inspections, etc. "Above asking" is irrelevant when every offer is above asking and some people are listing their property below expected sales price to drive more traffic.
Quote from @Daniel Vineis:Definitely makes sense David. Thank you for your insight.
Hey @Joval Mathai Thats a really good offer. But just because an offer is the highest doesn't mean it strongest. There are a lot of things that you can do to make an offer stronger but with out knowing the situation I would guess this is what happened. The listing agent referenced her comps and saw that your offer was lets say $70,000 over what she thinks it would appraise for. In this scenario if someone offered $30,000 over asking with a $10,000 appraisal gap that offer would net the seller more money and be a stronger offer. Its really important to know why the seller is selling the property. If they are just selling to get top dollar they might be more willing to gamble and hope it appraises for higher and they are ok with having to go back on market. If they have a time line Then a lower offer that is more secured and has less chances of falling apart would be more enticing. Hope this helped!
Asking price is a relative term. If a home is worth 500k and listed at 400k, 100K over ask would makes a normal sale. So much more goes into putting offers on multi family properties than just going over ask price. I consistently win deals with lower offer amounts than what other realtors are offering simply becuase I bring a high equality reputation to every deal and when listing agent looks me up they see someone that has closed dozens of multi family properties last year alone. Most of the time listing agent will not push the higher price but the deal they are most confident will close. Multi is not like ABC residential, for example is there are tenants in the property that is huge most seller will take offers that play into tenant terms. I could go on for a while with hundreds of different scenarios what an offer should or should not included but its all based on the property itself.
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Real Estate Agent New Jersey (#1326442)
- https://shawnmcenteer.exprealty.com/
Quote from @Shawn Mcenteer:
Asking price is a relative term. If a home is worth 500k and listed at 400k, 100K over ask would makes a normal sale. So much more goes into putting offers on multi family properties than just going over ask price. I consistently win deals with lower offer amounts than what other realtors are offering simply becuase I bring a high equality reputation to every deal and when listing agent looks me up they see someone that has closed dozens of multi family properties last year alone. Most of the time listing agent will not push the higher price but the deal they are most confident will close. Multi is not like ABC residential, for example is there are tenants in the property that is huge most seller will take offers that play into tenant terms. I could go on for a while with hundreds of different scenarios what an offer should or should not included but its all based on the property itself.
Thank you for your insight @Shawn Mcenteer
Hi @Joval Mathai,
I know it can be easy to get discouraged when you make offers like that and still nothing is getting accepted, but keep your head up--the Northern NJ market is just very competitive and tough right now.
As others have mentioned, price is not always everything--you have to take into account the whole package of terms that you are offering, and how attractive the combination of price + terms is to the Seller. These can be things like Closing Date, Contingencies, taking the property with or without tenants, amount of deposit, down payment amount, etc.
Having an agent that knows what they're doing is absolutely essential in a highly competitive market like we're in now.
@Joval Mathai it's likely the terms of the offer that is the missing link here. Could be anything from inspection waiver, to inspection window to closing date and much more. Price isn't always the most important thing to a seller.
Quote from @Kevin Manafi:
Hi @Joval Mathai,
I know it can be easy to get discouraged when you make offers like that and still nothing is getting accepted, but keep your head up--the Northern NJ market is just very competitive and tough right now.
As others have mentioned, price is not always everything--you have to take into account the whole package of terms that you are offering, and how attractive the combination of price + terms is to the Seller. These can be things like Closing Date, Contingencies, taking the property with or without tenants, amount of deposit, down payment amount, etc.
Having an agent that knows what they're doing is absolutely essential in a highly competitive market like we're in now.
Thank you Kevin for those words. I am loving the journey, its an experience.
Quote from @Joseph Guzzardi Jr:
@Joval Mathai it's likely the terms of the offer that is the missing link here. Could be anything from inspection waiver, to inspection window to closing date and much more. Price isn't always the most important thing to a seller.
Yes I would imagine. Thank you Joseph.