Counter Offer asking for a bidding war

[David Roe]

Looking at a fix and flip in the Dayton Ohio market, it went to MLS for $39,500 then price dropped to $34,500. I figured 30k in rehab on the property. It sold for $18,100 in Feb 2019 so i offered $24,000 cash deal with 7 day closing in hopes to get it for $28k-30k they would be happy with $5k-10k profit and not touching the house, almost a whole sale deal for them. ARV at max is 100k making the MPP @ $32,700. Instead of a real counter they pulled this:

"Thank you for your offer of $24,000 cash on the above property. Per our terms buyer assumes all closing and deed costs. Property sold in its AS-IS, WHERE-IS'' condition. Seller does not prorate taxes. Buyer pays all closing costs including, but not limited to any and all transfer taxes, title, legal, and recording fees. With our recent price drop, we did receive many offers and are above asking price. We will be taking highest and best offer by Monday. Please reply to this email only, with your buyer’s final offer, full name, current address and proof of funds. If you have any further questions please feel free to contact me. Thanks again!"

1.) They are being honest and have multiple offers and want to squeeze everyone for more cash, but i hesitate only because they didn’t say what that offer amount is.... Also if they had an acceptable offer why wouldn’t they have just accepted it other than to induce a bidding war?

2.) They have no other offers and my numbers were too low, they are trying to get me to bid against myself.

How would you all move forward? What profit numbers would you find acceptable on lower priced homes like this? Would you follow the 70% rule or have a min profit number and offer based on that? Do you think the owner is Full of BS or actually has other offers?

Dave-

[Mindy Jensen]

I've seen people stick with their original offer and get it. However, if you do this, be prepared to lose the property.

They are either lying or telling the truth. You have to decide what the house is worth to you, and offer that amount.

It burns me just a touch when I make an offer on a property that sat for a long time, only to hear this. I just lost a property because I didn't raise my offer when told a similar thing as you.