Frustrated! Can't get offer accepted -- when will this end?

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Frustrated! Can't get offer accepted -- when will this end?

NJ · Member since 2017 · 18 posts · 6 votes

It's been a year trying to buy a multi fam for owner occupy -- been offering 30k+ than listing price and waiving everything but nothing seems to work. Idk when this will end.. Mostly looking at Middlesex, and essex county

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Rachel Rocconi

Member since 2022 · 15 posts · 21 votes

Quote from @Joseph Antwi:

Quote from @Rachel Rocconi:

Try offering a couple thousand towards the seller's closing costs - a little goes a long way to show you're motivated and willing to work with them!

yeah just that they not even talking to us because they probably got a cash offer smh

I would encourage your agent to look at off market opportunities - expired or cancelled listings, posts for one side for rent (could be a tired landlord or an investor with multiple properties). Creativity is key in this market!

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Aleksandr Meston
Real Estate Agent · 32656 · Member since 2022 · 5 posts · 4 votes
4y
I know it can be frustrating, stick with it though. Maybe try a higher escrow payment, or possibly even sooner closing dates if possible. I hope this helps and GOODLUCK!!
1 Reply
Joseph Antwi
OP
NJ · Member since 2017 · 18 posts · 6 votes
4y
Quote from @Aleksandr Meston:

I know it can be frustrating, stick with it though. Maybe try a higher escrow payment, or possibly even sooner closing dates if possible. I hope this helps and GOODLUCK!!

Thanks, yeah been putting down 30k for earnest!
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Bob ReinhardBusiness Member
Lender · Patterson, NY · Member since 2017 · 488 posts · 186 votes
4y
It may have nothing to do with you. You will likely require a mortgage. If an investor goes into the property, a hard money loan for non-owner occupancy will get cash so much faster so that means an expedited closing with no real mortgage snags.
Just a thought ...
Much success.
Bob
[email protected]914-861-5501
1 Reply
Rachel Rocconi
Member since 2022 · 15 posts · 21 votes
4y
Try offering a couple thousand towards the seller's closing costs - a little goes a long way to show you're motivated and willing to work with them!
0 Reply
Joseph Antwi
OP
NJ · Member since 2017 · 18 posts · 6 votes
4y
Quote from @Rachel Rocconi:

Try offering a couple thousand towards the seller's closing costs - a little goes a long way to show you're motivated and willing to work with them!

yeah just that they not even talking to us because they probably got a cash offer smh
0 Reply
Joseph Antwi
OP
NJ · Member since 2017 · 18 posts · 6 votes
4y
Quote from @Bob Reinhard:
It may have nothing to do with you. You will likely require a mortgage. If an investor goes into the property, a hard money loan for non-owner occupancy will get cash so much faster so that means an expedited closing with no real mortgage snags.
Just a thought ...
Much success.
Bob

Yeah fair point, just not fair!
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Rachel Rocconi
Member since 2022 · 15 posts · 21 votes
4y
Quote from @Joseph Antwi:

Quote from @Rachel Rocconi:

Try offering a couple thousand towards the seller's closing costs - a little goes a long way to show you're motivated and willing to work with them!

yeah just that they not even talking to us because they probably got a cash offer smh

I would encourage your agent to look at off market opportunities - expired or cancelled listings, posts for one side for rent (could be a tired landlord or an investor with multiple properties). Creativity is key in this market!
6 Reply
Mark F.
Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes
4y
Quote from @Joseph Antwi:

It's been a year trying to buy a multi fam for owner occupy -- been offering 30k+ than listing price and waiving everything but nothing seems to work. Idk when this will end.. Mostly looking at Middlesex, and essex county
You need a better realtor and get better search parameters. Took me two offers in 2020 to get my first duplex. Second time in November took me 1 offer one place.

What helped is looking when less people are out ie not during spring but when it's cold, rainy, etc winter months. Also look at the crappiest place condition wise you can get away with and look at one's that have crappy listings like one photo etc. Look at stuff that's been sitting on market for a while. Everyone is going right, you need to go left.
Your realtor needs to not only know people ie not part time but has been doing this for a while so they most likely know the sellers realtor but also how to sell you. I've gotten my two duplexes with the two hardest owner occupied loans, VA and fha. Because my realtor spends time explaining why I'm the best offer even if its not way over asking (only slightly).
3 Reply
Suril Dalal
Lodi, NJ · Member since 2017 · 24 posts · 4 votes
4y
Does the property still make sense if you're offering 30 over listing and people are still willing to go higher or offer cash?
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Joseph Antwi
OP
NJ · Member since 2017 · 18 posts · 6 votes
4y
Quote from @Suril Dalal:

Does the property still make sense if you're offering 30 over listing and people are still willing to go higher or offer cash?

any price above that the #s doesn't make sense, but I guess people can have negative cash flow for some time
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S .Giger
Investor · 93023 · Member since 2021 · 5 posts · 13 votes
4y
Quote from @Mark F.:

Quote from @Joseph Antwi:

It's been a year trying to buy a multi fam for owner occupy -- been offering 30k+ than listing price and waiving everything but nothing seems to work. Idk when this will end.. Mostly looking at Middlesex, and essex county
You need a better realtor and get better search parameters. Took me two offers in 2020 to get my first duplex. Second time in November took me 1 offer one place.

What helped is looking when less people are out ie not during spring but when it's cold, rainy, etc winter months. Also look at the crappiest place condition wise you can get away with and look at one's that have crappy listings like one photo etc. Look at stuff that's been sitting on market for a while. Everyone is going right, you need to go left.
Your realtor needs to not only know people ie not part time but has been doing this for a while so they most likely know the sellers realtor but also how to sell you. I've gotten my two duplexes with the two hardest owner occupied loans, VA and fha. Because my realtor spends time explaining why I'm the best offer even if its not way over asking (only slightly).

A lot of great advice in here, based on my experiences I have to second this bit in particular. Many folks give up looking during those off market times, such as NOV-JAN through the holiday period. In my opinion and experience, this is when buyer competition is lower, and motivated buyer meets motivated seller. If you're out there shopping through the more difficult periods and funneling time into it during a Holiday period, it's a pretty solid green flag you're not out their giving up time with family and friends just to kick tires. Likely the same situation for the seller. I got a fantastic deal on a SFH w/ an ADU that would become my primary residence. The seller? An investor doing a 1031 exchange and motivated to sell. Which rolls into the next point.
Having a great agent, not all are created equal and you want one who can sell your offer. There's always a lot of 1s and 0s, but there can be an emotional component. I was using the VA loan, and our agent used military member and fellow REI buying a home for family to build report with the selling agent. This was in a small tight knit community and the seller had close ties with the neighbors. The seller was happy to see we would be a good fit for neighbors. The seller also loved that we were coming to a tight knit community where people lye roots, and as fellow REIs weren't in fear of CA sticker prices. It's not about if you can or can't afford it, but how.
I would also recommend shopping for a good lender as well, one that specializes in whatever product you plan to utilize. The seller had a timeline to execute his 1031 exchange, and we had a lender that was capable of helping him execute that. What I learned about the VA loan, is that while almost all traditional lenders offer a VA product, very few specialize in it. My great agent hooked me up with one that did. They crushed the underwriting to make sure I was looking at as wide of a playing field of properties that made sense with the product, they had 0 snags during the contract, and most importantly in this market they performed. We closed in 21 days, two days before Christmas. This particular lender has been known to close in 2 weeks, which pardon my language is essentially full afterburner in a fighter jet for a VA loan.
TL;DR: We shopped in the off season when motivated buyers and sellers were in the field, assembled a great team, and through that team brought value to the seller in other ways than just buying his property. No mistake about it was work in this market, perhaps it was easier in the past. Once you have a good team and crack that nut, now you'll still have the great team and a track record to go add or find value in other ways. Good luck out there!
3 Reply
Hady Farag
Rental Property Investor · New York, NY · Member since 2021 · 25 posts · 20 votes
4y
@Joseph Antwi

I get it. I finally closed on a 2-family in Newark last week after 10 months searching. It’s crazy how this market is but here are a few experiences I went through that I can share ..

My first offer on a property I got an accepted offer! I was ecstatic to say the least. Especially at a time where interest rates were at an all time low, I had a quote at 2.5% and the property was a legal 3-family. Then came the appraisal …

The property under appraised by $175k below the agreed upon price (Imagine a 3-family with 3 bedrooms and 2 bathrooms in each unit in Newark with no work needed appraising at 475K LOL). I was going through FHA and the hoops they make you jump to fight an appraisal is ridiculous. The deal fell apart and I was pretty bummed out but I wasn't giving up.

4 offers later I finally got the perfect property for me and did a conventional loan. Most of the time I was getting outbid by people, as much as by 50k over asking price, and that’s just the game. I lived with my decisions knowing I made my best offer and not basing it off on emotions. You’ll find something soon, just revisit your offers and stay competitive. In my experience the offers that were picked were the ones that offer the most money. Good luck and don’t give up
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Joseph Antwi
OP
NJ · Member since 2017 · 18 posts · 6 votes
4y
Quote from @Hady Farag:

@Joseph Antwi

I get it. I finally closed on a 2-family in Newark last week after 10 months searching. It’s crazy how this market is but here are a few experiences I went through that I can share ..

My first offer on a property I got an accepted offer! I was ecstatic to say the least. Especially at a time where interest rates were at an all time low, I had a quote at 2.5% and the property was a legal 3-family. Then came the appraisal …

The property under appraised by $175k below the agreed upon price (Imagine a 3-family with 3 bedrooms and 2 bathrooms in each unit in Newark with no work needed appraising at 475K LOL). I was going through FHA and the hoops they make you jump to fight an appraisal is ridiculous. The deal fell apart and I was pretty bummed out but I wasn't giving up.

4 offers later I finally got the perfect property for me and did a conventional loan. Most of the time I was getting outbid by people, as much as by 50k over asking price, and that’s just the game. I lived with my decisions knowing I made my best offer and not basing it off on emotions. You’ll find something soon, just revisit your offers and stay competitive. In my experience the offers that were picked were the ones that offer the most money. Good luck and don’t give up

Thanks for sharing your experience -- where did you end up buying? and also did appraisal come above the price? if so, how did you make up the difference? just cash?
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
4y
Keep at it Joseph! If you can get something accepted in your market you can anywhere! It takes time and patience
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Doug Spence
Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
4y
@Joseph Antwi What kind of terms is your lender providing? I was able to get an offer accepted last summer on a primary residence in San Diego using a VA loan largely because my lender could do a 17 day close, and agreed to pay out $250 per diem to the sellers if he couldn't close in 17 days. That made my offers more appealing to sellers!
Good luck and keep us updated!
1 Reply
Albert Velasquez
New to Real Estate · Bolingbrook, IL · Member since 2022 · 30 posts · 15 votes
4y
See if your agent can speak to the listing agent and ask them exactly what they need for your offer to be accepted. Here's a script they can use "Hi, LA, without discussing price, what does your seller need in order to feel the most excited about accepting my client's offer. Do you need an AS-IS sale, or is a regular sale fine? Do you need a quicker closing date, or does your client need to rent back?"

Also, make sure your agent makes things as easy as possible for the L.A. Most LAs right now don't need to work that hard because demand is so high and supply is insanely low. As a result, they might be going with easy-to-read/present offers. Make sure your agent is talking to the L.A. and vouching for you. You could also ask your lender to give the L.A. a call and vouch for your finances.
Good luck, things are tough right now all over the country!
1 Reply
Michael Deering
Rental Property Investor · Lehigh Valley, PA · Member since 2017 · 200 posts · 191 votes
4y
Attend REI meet-ups, network, get off market deals
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Stephen Brown
Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
4y
Almost everyone is getting outbid right now. If you're going to go on market and get a deal you need to go into smaller markets where the numbers still make sense.
1 Reply
Twana RasoulBusiness Member
Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
4y
@Joseph Antwi Hang in there Joseph and keep at it. Are you removing all contingencies, including inspection? not sure $30,000 above asking is a competitive offer or not, depends on your market, asking price, market value of the property, etc. There are alot of neighborhoods in San Diego that offering $30k above asking won't do the trick if property is priced appropriately. a good listing agent typically would price a property slightly under market value to draw multiple offers and get a little bidding war going.
Also keep in mind that highest price doesn't always mean winning offer, strong terms are important along with sellers needs. Hopefully your agent is speaking with the listing agent before you guys are submitting offers...I see many people blindly sending out left and right without every reaching out to the listing agent to see what they (including sellers) are looking for in an offer.
If you guys do the above, you should be able to compete and beat cash offers. There are quite few instances where we are going up against cash offers but with the right offer you can beat it, heck I've been able to beat out cash offers even with fha and VA loans. Cash is not always that great, it depends on their price, terms, etc. and lots of times cash buyer's will put offers in and will not follow through because they will be investors that have offers out on a dozen properties and only want to buy 1.
Best of luck to you!
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Emy Bernardo
Investor · San Diego, CA · Member since 2017 · 112 posts · 92 votes
4y
@Joseph Antwi Check with your agent to see if there are any cash buyer programs available. The agent would need to take a short training class (most are about 1hr) to be eligible to offer to you. I did the training with Flyhomes and it looks really promising. It's one of the few cash buyer programs I've found that will lend on 2nd homes and investment property. They pre-approve you and then give you a short term loan to buy the property cash w/ a quick close, no appraisal contingency. After closing, you can refinance with them into 30 yr fixed and waive the 1% service fee or use your own lender. I don't see that they are in NY yet but I would imagine there is a similar solution there. Hang in there!
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Johnny McKeonPro Member
Rental Property Investor · Mesa, AZ · Member since 2016 · 101 posts · 72 votes
4y
Quote from @Doug Spence:

@Joseph Antwi What kind of terms is your lender providing? I was able to get an offer accepted last summer on a primary residence in San Diego using a VA loan largely because my lender could do a 17 day close, and agreed to pay out $250 per diem to the sellers if he couldn't close in 17 days. That made

whoa! that's crazy fast. what lender did you use for your VA homa loan?
I'm also looking to purchase a primary in San Diego County and would like to get pre-approved with someone who knows the VA loan very well

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Shawn McenteerBusiness Member
Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
4y
Hi @Joseph Antwi are you using FHA? 1 year is a very long time, most of my clients are under contract in under 1 month. Just went UC on a house hack in less than a week from meeting my current clients. Submitting offers on MFR is a much different than a standard single family.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
Well in DC we are 12 years into our sellers market. So I wouldn't try to wait out the market conditions....Id try to improve those offers to compete better.
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Joaquin Camarasa
Real Estate Agent · Springfield VA · Member since 2018 · 479 posts · 400 votes
4y
You might have to pivot to a different asset or change to a more affordable neighborhood in which you have more spending power than the rest. Once I lose 3-4 times on a specific criteria the client has, I have a serious talk with my client and share that either they try one of the options I shared above or the level of frustration will keep increasing even more as rates go up in the upcoming months.
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Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
4y
Get more aggressive on the price. Review your past offers. How much did they close for? This will tell you how much you were off. $30k over the list is nothing if the next person is paying $50k. For example, in my area, we have people offering $100k over the list and still losing.
Think about it from a market perspective. Let's say there are 10 offers on the place. You have to figure out where everyone is going to be based on past and current data. Then come in above them. Depends on the market but it's usually what your max price +3-5%.
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