I got my a$$ kicked yesterday in Columbus, Ohio

[Chad B.]

Yesterday I was feeling as good as it gets after running the numbers on a SFH and proudly putting in an offer on a house at full asking price with conventional financing; pre-approval letter in hand and a nice letter from my family included with the offer. Money in the bag, know what I mean? Well, my eyes have been opened up to the hotness of the market in Columbus. My full asking price offer was basically pushed aside (maybe it came in too quickly to when the house went on the market?) and I heard nothing from the seller for the next 24 hours... even after my offer expired with no accept or decline. Finally, more than 24 hours after I submitted an offer I heard from my realtor that someone made a cash offer over asking on the house and would be closing quickly. So my friends, how does the little fish win in a market like this? What could I have done to convince a seller to wait on my 30ish day closing when someone else is a cash buyer? I want to become a big fish / cash buyer, how do you recommend overcoming those cash buyers when I don't yet have the funds to do that myself? To the likely BP member who gobbled up the house I was offering on, kudos to you my friend.

[Account Closed]

Don't believe the listing agent, they have lied to me many times about "over asking price" lets wait and see if it sells and goes pending.  

I would say keep searching, find an excellent agent you knows what you want, have your pre approval ready and find 10 properties you like and make offers. 

[Jerry Wamsley]

Hello Chad B.,

I suggest getting all of your documents with a local lender pending title and appraisal.  This will cover some ground as well as get you closer to a cash position.  If you can have the lender sign off on Cash (acceptable source for down payment and closing costs including reserves after closing) and Capacity (Income vs. debts with the ability to repay) you will then need to vet the property with appraisal and title search.  Then the only reason a cash deal beats you is time since there isn't an appraisal and only a title search along with inspection contingencies per the contract.  Also, create a little room with renovation financing by having your contractor poised for quotes for repairs if necessary.  A lot of buyers do not like distressed housing since there is work that needs to be done in lieu of turn key.  Finally, Columbus, OH is on fire.  Offers are coming in with appraisal contingencies being waived if not appraising meaning buyers will then pay $XXX towards seller's closing costs.  Best of luck, let me know if you need a great lender.

[David Faulkner]

Put the offer in through the listing agent and let him double end the deal ... you'd be amazed how quickly your offer jumps to the top of the pile.

[Nathan Mairs]

Good tip.

The last deal I bought was a single family house in Westerville Delaware County, highly desirable suburb for families. 

Like yourself, previously outbid by a cash investor.   This time round my agent and I offered $1000 above the asking price with an escalation clause and agreed to pay 100% of the closing costs.  This 4 bedrooms 2 bathroom was sensibly priced with an open house weekend so I knew I'd likely lose out to someone else if we did not act fast. 

The deal came up on the MLS on Thursday afternoon and by that evening our offer was out the door valid until 5 pm next day.

It's tough. Stay persistent, keep your pulse on the market and eventually you'll close on something valuable. 

Are you working with a local agent in the area?

[Ron Flatt]

Continue making offers.  Do not fall in love with the house, but the deal.  Make your offer, and move on to the next one.  

Even today, I can get caught up with the bidding frenzy, (auction).  I usually offer a little less than I am willing to give, because they sometimes will jump on it, but I try to stick to the numbers and do not budge over my preset max.  

It is a numbers game, take the emotion out, find the next one.  Even in hot markets, you put in an offer a week, you will have a house before long.  

Good luck.

[John Horner]

Originally posted by @Chad B.:

Yesterday I was feeling as good as it gets after running the numbers on a SFH and proudly putting in an offer on a house at full asking price with conventional financing; pre-approval letter in hand and a nice letter from my family included with the offer.

Money in the bag, know what I mean?

Well, my eyes have been opened up to the hotness of the market in Columbus. My full asking price offer was basically pushed aside (maybe it came in too quickly to when the house went on the market?) and I heard nothing from the seller for the next 24 hours... even after my offer expired with no accept or decline.

Finally, more than 24 hours after I submitted an offer I heard from my realtor that someone made a cash offer over asking on the house and would be closing quickly.

So my friends, how does the little fish win in a market like this? What could I have done to convince a seller to wait on my 30ish day closing when someone else is a cash buyer? I want to become a big fish / cash buyer, how do you recommend overcoming those cash buyers when I don't yet have the funds to do that myself?

To the likely BP member who gobbled up the house I was offering on, kudos to you my friend.

 What area was the property?

[Chad B.]

John Horner It was in Grove City, were you the big fish? :)

Thanks for all the tips, folks! Much appreciated!

[Robert Ellis]

Originally posted by @Nathan Mairs:

Good tip.

The last deal I bought was a single family house in Westerville Delaware County, highly desirable suburb for families. 

Like yourself, previously outbid by a cash investor.   This time round my agent and I offered $1000 above the asking price with an escalation clause and agreed to pay 100% of the closing costs.  This 4 bedrooms 2 bathroom was sensibly priced with an open house weekend so I knew I'd likely lose out to someone else if we did not act fast. 

The deal came up on the MLS on Thursday afternoon and by that evening our offer was out the door valid until 5 pm next day.

It's tough. Stay persistent, keep your pulse on the market and eventually you'll close on something valuable. 

Are you working with a local agent in the area?

Was the one a bank owned? those are the best deals up in westerville especially around 270 and just inside the loop there. 

[Brad Clarizio]

I told you to offer over asking....you will learn some day my friend. :)

But on a more serious note, this stuff happens man. I can't begin to tell you how many offers I've put in and not heard anything back on, rejected, etc. It's a numbers game. I think your issue is (and I've told you this before, and you have a good reason that rhyme's with life), but I think you over analyze. Some of my best deals have come from just saying "screw it" and going for it. Rarely will you lose money on a rental, it might just take more time to regain it back. 

[Steve Vaughan]

If your prospective deals are being gobbled up that quickly, it sounds like you are on the right track as far as your analysis.

However, as on old investor that likes to buy when others are selling, zig when others are zagging, I question this frenzied logic.  "How can I buy all cash, pay over asking and have as few contingencies as possible so maybe, possibly, my offer is accepted?"   Is that the question? 

Just an observation from an outsider.  I am personally sitting back- selling my dogs and reducing higher rate and higher hassle debt.  Entirely different investment asset classes may be in order if you are trying to out-freny the frenzied @Chad B.!

[John Horner]

Originally posted by @Chad B.:

John Horner It was in Grove City, were you the big fish? :)

Thanks for all the tips, folks! Much appreciated!

 Haha no not me!  

I avoid the MLS like the plague. I'm more of an off market guy!