All Forum Posts by: Greg R.

Quote from @Joe Miller:

All these responses are great.

I would have your agent jump on other agents in their office for broker exclusives. They make the buyers, buyer agent, seller and selling agents life so much easier. Have them prowling the office listings that people mention that fit your needs. 

This will weed out all the competition and get you first bite. I have experienced success with this!

Excellent suggestion. This is likely the best route for me at this point. It's actually a win/win for sellers that are not interested in the circus of a million showings/ offers, all the drama, etc. I actually have a really good lead on a deal that is a win/win for me and
the seller (off market, planning to list). It's a good/ fair price that the seller is happy with and I am happy with.

I don't care what I'm dealing with, a home, an auto mechanic, landscaping, etc. I want mutually beneficial and fair deals. I'm not in the business to take someone to the cleaners and rip them off. Nor do I want to feel like I'm being ripped off.

Quote from @Joe Miller:

All these responses are great.

I would have your agent jump on other agents in their office for broker exclusives. They make the buyers, buyer agent, seller and selling agents life so much easier. Have them prowling the office listings that people mention that fit your needs. 

This will weed out all the competition and get you first bite. I have experienced success with this! 

Excellent suggestion, thanks much Joe. 

Quote from @Jordan Moorhead:

@Greg R. we're not seeing that so much in Austin in the last few weeks. Try a partial waiver of a few grand to get past it.

Thanks Jordan, that's encouraging news. I've been including a partial waiver of 10k. I am going to continue on that path. Hopefully spring/ summer brings a bit more inventory. 

Quote from @John Clark:

Quote from @Greg R.:

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Extortion is always willful, and always voluntary, by the extorter. But if there's no coercion by the "extorter" then it's not extortion. Your rhetoric is out of wack.

Agree to disagree. 

Quote from @Shawn L.:

Quote from @Greg R.:

Thanks much @Celine Crestin, great info. I do have a really good agent who is working hard, very communicative with the listing agents, etc. What I've seen so far is that the listing agents are generally not communicative due to the amount of interest. They list on a Tues/ Wed, offer showings over the weekend then call for best/ final on Sunday evening or Monday AM.

We were interested in one that was listed at 675k and they told my agent not to bother submitting an offer unless we were north of 800k.

Another listing agent had a condescending comment about our partial waiver offer (which was 25k over list), and said that they haven't accepted an offer without full waivers on everything in over 12 months.

In any event... I'm confident that the tide will shift at some point. When it does, me and other investors will be happy to show the same decorum to those individuals when the shoe is on the other foot. Karma is a cool thing, it has a way of finding the right people down the line.

It sounds like you’re upset at the sellers in the quoted post and another above where you state that sellers are engaged in extortion. If they have a stack of offers with no contingencies and higher than list purchase price, how are they extorting anyone? Should they be tossing all those offers in the garbage? I get it’s frustrating as a buyer but that’s how free markets work.

As stated above look for either high dom “leftovers” or 0 dom listings with very limited showing times. I’m in escrow now on a deal where there was a 3 hour window weekday morning for showings. First day had multiple offers, mine was strong including a pof showing more than 50% of purchase price sitting in a bank account and no contingencies. In a rapidly increasing market appraisals can come in low due to the lag between contract date and sale date, plus with such low inventory the volume of sales is not real high, so you need to understand and accept that risk if you’re going to waive the appraisal contingency.

I'm not mad at the sellers, any seller including me wants to get as much as the can when selling. I said willful / voluntary extortion, no one has a gun to their head. This is very similar to what's happening at car dealerships across the country. Want to buy a new Ford Shelby or Ford Raptor. It has an MSRP of 80k, but dealerships are demanding 115k just because they can, there's enough "demand". I personally think that's unethical behavior.

Let me ask you this, was it ethical for those guys to buy up all the hand sanitizer a couple years ago then resell it at a 10x profit? How about the toilet paper, paper towels? Is it ethical for car dealerships and others to price gouge because they can? After all, it is a free market, right?

@Justin Lanciault as I said in previous posts I have been bidding about 25k above list and have been offering 10k (cash out of pocket) toward any appraisal shortfalls. Is the idea that for a "home" I need to have visions of the white picket fence, the dog in the yard, the kids in the pool, and then throw all logic & common sense to the wind?

I suppose that in one sense I am looking at this as another deal. But maybe I'm unique in that regard, I don't get attached to homes/ real estate, zero emotional connection. Regardless, I honestly don't think I can stomach throwing out that kind of cash to buy a house at full appraised value. If I did I would go into it extremely bitter and don't think I'd be able to enjoy it. 

Thanks for sharing @Julie Williams. Sorry to hear about your experience, things will shift sooner or later. The idea that the market will go on like this indefinitely is not seated in reality. The market is cyclical and history has proven this. I might be in a situation where I just rent for a year (or more) rather than make a stupid purchase.

I'm in a bit of an compromised situation, as "life" requires me to move to the DFW area before August. The wise move is to be patient and wait for the right opportunity. A lot of the people making stupid buying decisions are likely in situations similar to mine. 

Thanks much @Celine Crestin, great info. I do have a really good agent who is working hard, very communicative with the listing agents, etc. What I've seen so far is that the listing agents are generally not communicative due to the amount of interest. They list on a Tues/ Wed, offer showings over the weekend then call for best/ final on Sunday evening or Monday AM.

We were interested in one that was listed at 675k and they told my agent not to bother submitting an offer unless we were north of 800k.

Another listing agent had a condescending comment about our partial waiver offer (which was 25k over list), and said that they haven't accepted an offer without full waivers on everything in over 12 months.

In any event... I'm confident that the tide will shift at some point. When it does, me and other investors will be happy to show the same decorum to those individuals when the shoe is on the other foot. Karma is a cool thing, it has a way of finding the right people down the line.

Hey @Peter Bocian thanks for starting this thread. I was just out in Richmond and Rockwall for about a week and a half (1 week ago). Up in those parts or town I was very disappointed with what I was seeing. Basically full on bidding wars and extremely low inventory. Perfect storm for generating over inflated prices for subpar properties. Even the FSBO and off market listings that I came across were significantly over priced. Don't forget about the property tax in TX. I don't know much about the Phoenix market, but I'm willing to bet taxes in TX are quite a bit higher than AZ.

Thanks @Celine Crestin. I have no problem going over list... that is, as long as the house will appraise. My hang up is committing to eat appraisal shortfalls with cash out of pocket - especially when that amount is in the tens of thousands. I can eat 5, maybe 10k, but I refuse to play the game that a lot of inexperienced/ desperate buyers are playing.

Can you tell me how you got offers accepted with no waivers in multiple offer scenarios? Do you know if you were going up against offers that waived all contingencies? Would love to know how you're navigating these situations.