What a Winning Bid Looks like?

[Stephen Foltin]

Hello all,

I am in Charlotte and have now been outbid six times in six months. I have tried offers with $20k over asking, guaranteed offers, guaranteed money over appraisal, and lately a combination of all of those. Every time the listing agent has said our offer was strong and there was nothing else the seller was looking for only to find out we were second fiddle (every time). I don’t know if I am extremely unlucky or just really good at putting in second best bids but every time we have been told the accepted offer was one the seller had to accept. I am assuming some of them have been cash, and even found out one offered $3k over appraisal as well as paid the listing agents commission (which was $22k) for a net of $25k over its value, yikes! If anyone can give me insight to what some winning bids look like I would be much appreciated! I am hoping I don’t have to keep playing second fiddle.

I am also wondering if it would be worth borrowing money from parents to be able to say I am putting in “cash offer” but not sure how that whole thing would work. Could I say it’s cash offer and show proof but then use a bank? Or say it’s cash offer use my parents money than get loan? Not sure how tax implications or logistics are on doing that so if you have any advice on that as well.

All help is much appreciated!!

Thanks!

[Will Fraser]

Dang @Stephen Foltin, that sounds like a frustrating ordeal altogether!

First, I'd check to make sure your numbers still check out for buying.  It doesn't always make sense to buy, so it's worth mentioning.

Assuming it does still make sense then the second thing to check is this:  what number WORKS for you for each property?  Forget List Price.  Absolutely forget it!  It's a terrible guide for you but a good guide for other people.

For example:  if you are looking at a house listed at $250k then $50k seems absurd as a factor of the list price, but if $300k works for you for the home then it's YOUR right price.   The vast majority of people WOULDN'T offer that because it is 20% above list and people are anchored of the list price, but if you can do the work to really know your numbers and let them lead then you can know that you offered the right price, nevermind the outcome.