Hey BiggerPocket, it's a silly situation, it's my fault, I hope you don't laugh at me too much LOLI made an offer on a house, they accepted it almost instantly, I realize the purchase price is too high, what should I do?What I did wrong are (don't repeat my mistakes >O O<.3) I really didn't think I'll get accepted that quickly LOLThe asking price is 125k, my offer is 130k, zestimate is about 128k but i know it's debatable... What do you do in this situation??? I think the house has potential if it's lower price, I shouldn't have put that high

First comment I have is directed @Felix Goldstein: unlike you, licensed Realtors have fiduciary and ethical responsibility to the clients that they represent. You saying ""agents/brokers lie ALL the time. it sounds like you relied on an agents lies when making your offer"" would be like me saying "investors lie ALL the time. They are nothing but slum lords who cheat everyone and pull the wool over peoples eyes with trashy/shoddy improvements" Your comment was offensive to all of us who work hard and fight daily on behalf of our clients.@Chingju Hu: Read your contract closely. What state is the property located in? There are typically several areas that a contract will be contingent upon. For example, a buyer may be allowed a specific amount of time after signing a contract to review the home owner association documents. If something is revealed in those documents that is unacceptable to the buyer, they may ask for termination of the contract. (I recently had a buyer back out because they found out that sheds were not allowed per HOA CCR's)If you reserved the right to have a survey conducted, you may be able to terminate the contract if something shows up on the survey that is not acceptable to the buyer (a drainage or utility easement that was unknown, a fence that is over the property line, etc.)Deals can fall apart over financing, as well. Perhaps your verified funds for down payment are no longer available (you spent it or simply removed it from your bank account) or you have too high a debt-to-income ratio (you go out and buy a boat, financing the purchase)Also, ask your agent to provide you with recent (past 6 months) comps for the area, using only homes of similar size/age/upgrades. Just because a seller accepts your offer quickly does not mean that you are over paying.Finally, the alert that you received saying that it was a "new listing" was most likely auto-generated from the search that your agent set up for you on the local MLS. There are lots of ways for a property to be re-introduced as 'new', including price changes, new photos being added, being temporarily withdrawn then re-activated, etc.Sorry for the long response, but I hope that it helps. Best of luck to you!

As @Zachary Hendricks said you can change your mind quickly, try to save EMD, apologize and get out.As an alternative point of view, is the market you're in super hot? Maybe $130k is not a bad price to pay for the house.Forget Zillow. Please. Zillow lets you know if you are in a 200k neighborhood or a $400k neighborhood if you were blind folded and dropped from a moving car without knowing where you are. Zillow is below garbage; I don't rely on them to be within $50k let alone the $2k you are worried about.An agent in my office listed a condo for $99k recently and it sold for $109k with offers up to $117k. Maybe you are in a similar situation.

You're not alone, everyone makes mistakes. You can always negotiate to lower the price especially if you find issues during due diligence. Typically if you try to lower the price and the seller thinks they can get more, they will just reject your counter and you can move on from the deal and learn from your mistake. You haven't paid too much for the house until you sign at closing. If you want out of the deal, try to do it sooner rather than later and apologize for wasting their time. If you have given earnest money, that's up to the contract whether you will get that back or not. People understand that people make mistakes. Just be honest and up front about it.-Zac

You pick an agent you trust and feel comfortable with after interviewing them. They are ideally not the listing agent for the house you are buying since they already represent the seller and their interests. See below BP article. Good luck!The Epic Guide to Finding an Investor-Friendly Real Estate Agent

I always do my proforma and due diligence before even talking to agents about making a deal on a property. It lets me be in charge of the numbers in a way that I am comfortable with. If the agent doesn't think the deal will go through, I will still request to submit the offer with a number I am comfortable with. Worst case scenario, the seller doesn't accept (who cares) or the seller counters. Or best case scenario, the seller accepts (jackpot!). I never offer above listing unless I know the numbers work and I really want the property. Don't get attached to the properties unless it will be your primary home. You don't need all your offers to get accepted, you just need one.

Yes that makes sense, In my calculation, i know that $25 a month doesn't change anything. My main concern is that I'm not comfortable with the agent and with the situation anymore, and also I want to correct my mistake to start over on another property.

@Chingju Hu Everyone says "you make your money when you buy" and that is true. The posts above have lots of good suggestions so I will throw out a different idea. Have you done the math on what an extra 5K will do to your cashflow? It will probably decrease your cashflow about $25 a month. 5K on any one deal is within the margin of error if you are trying to build a portfolio in my opinion.

Hi, thank you all for all the replies! There's typo on my original post about the '8000k' increase. The agent said that the area is very competitive that the final purchase price will be $8k~$15k more than the asking price, so it's $125k -> $133k and therefore my offer is $130k. In reality the property is in the market for 3 month now, it already drops the price from $129k to $125k, so it's not competitive at all... (again, my mistake for not verifying it myself)"is the agent the sellers agent or your agent"? I think this is a buyer's agent (How to verify???) How do I get an realtor on my side or unbiased? I will not work with her anymore. I think agents all get paid if I close the property, whether it's seller pay or i pay, so I feel they are always pushing for close.On a side note: I withdraw the offer yesterday midnight because I don't feel comfortable in this situation and want to slow down. It's not under contract yet, I haven't paid anything yet and luckily they are nice about it. Today I started to talk to many other agents and hope to get exposure on other deals. And I will slow down my process in making offer, do more research on my own, be more professional in the process and I don't want any rejected offer affect my emotion....

Get a good property inspection and request that the seller does the required repairs. It will make 2k that you "overpaid" disappear immediately.

Actually I think this is a valid issue. All realtors probably aren't all dishonest but there are quite a few of them. I have dealt with quite a few and sometimes some have a way of elevating their interest of earning a commission above the clients best interest. Sure not every realtor does this but there are enough of them doing it to be an issue -- and regardless of what their duty to the client is supposed to be.

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Updated over 7 years ago, 07/20/2017

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Posts: 64
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Chingju HuPoster

San Francisco, CA

Buying & Selling Real Estate

My offer I set the purchase price too high, now what?

Chingju HuPoster

San Francisco, CA

Posted July 18, 2017 22:29

Hey BiggerPocket, it's a silly situation, it's my fault, I hope you don't laugh at me too much LOL

I made an offer on a house, they accepted it almost instantly, I realize the purchase price is too high, what should I do?

What I did wrong are (don't repeat my mistakes >O<):

1) I had offers rejected instantly or ignored the day before, I felt upset and got carried away

2) I listened to the agent way too much without doing lots research myself, the agent said the house will go up 8000k more on the asking price and will have many offers and I listened >O<.

3) I really didn't think I'll get accepted that quickly LOL

The asking price is 125k, my offer is 130k, zestimate is about 128k but i know it's debatable...

What do you do in this situation??? I think the house has potential if it's lower price, I shouldn't have put that high

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