Overpaying for property

[Brad Baker]

This week I made an offer on a property in need of rehab that was listed on the MLS for 113,000.

I estimated that ARV was 155,000 and repairs would amount to be 30,000. It had been on the market for a little while so I figured I would give it a shot and offered 75,000. I get a message from the listing agent 2 hours later saying there's another offer on the table. No biggie, I'm confident with my numbers and offer 80,000, no contingencies, and a considerable deposit. This was all Wednesday.

I come to find out today that the listing sold FOR OVER ASKING PRICE. Needless to say it wasn't to me. The moral of the story is that this buyer paid way too much for this property because he was in a competitive situation. They lost their cool and over payed in order to not lose the contract, when in reality they could have offered much lower and still got the deal, I was $33,000 below asking price!!! YIKES! I cannot see any way paying over asking in this situation is a good buy for anyone unless they're maybe doing an FHA 203k?