Until a home is actually under contract (contracts signed by both parties), a seller is never going to just stop taking offers. It sounds like you're in a competitive market. In a competitive market, you're almost never going to win if you're putting in offers asking sellers for large concessions up front. If you're offering asking price, but wanting 6% in concessions, you're actually offering well under asking.
Even if a counter offer is made, and you accept, the house is still not technically under contract, and the seller can entertain whatever other offers come in. Even if it was under contract, many states allow either party to back out for any reason within a few days of signing a contract.
So basically everyone is on eggshells until keys swap hands? Could you expand on the counter-offer / acceptance / still not technically under contract? I assumed with the seller signing a counter offer, it was their acceptance to the offer
It depends on what your state laws are. Your agent can probably better explain this. An offer is not a contract, unless it is being made in the form of a contract. So for example, in my state, you can write what is called a "proposal to purchase". This is not really a binding contract, it is just a signed document outlining what your main offer points are. Once accepted, then a full contract is drafted. However, there are outs for both parties in that contract. So it really depends on what your specific state laws and practices are.
You need to get past the 3 day recision period, get their money in escrow, and get past the inspection period. Not accounting for sale or financing contingencies. A buyer can just stop communicating with their lender and their loan doesn't get cleared to close, for instance. You need to have all those things locked down tight in the contract.
When we were selling our house this happened. We accepted an offer and before paperwork was actually signed a better offer came in. Paperwork has to be actually signed before anything is officiall you have to be fast. We accepted and went with the highest bid. This happens alot. If you want to not get outbid you need to offer more money usually over asking price. It's a competitive market since not many people are selling homes.
How would a 24 hour counter offer deadline work on a Friday when you were told it would come Monday. 24 hours has come and gone by then. Regardless what you are learning is that in your market you cannot be coming in low. You are getting in bidding wars because your offers are not good enough.
We weren’t told it would be considered/looked at until Monday until after the all offer paperwork was signed and submitted to the listing agent. We’ve been coming in at asking price for each offer
In a competitive market, asking price isn’t good enough. In my market, well priced properties are still receiving 4-8 offers and typically will sell for 10-20% over list price the first weekend.
Most of what we’re seeing isn’t 10-20% over but maybe a few thousand or asking price with no type of concession or seller assistance (home warranty/surveys/etc). I think that’s what I’m most frustrated with. We’re not only battling high interest but absolutely absurd inflated prices and competition. We’ve considered saying screw it and renting but no one near us takes 3 dogs
You say inflated prices now.. until you buy that home and in 5 years you become a seller. You will want top $$ and be sitting happy. Don't go back to renting. That's a step backwards and makes zero sense. If you have the opportunity to buy now, do it. Get more aggressive with your offers. Trim down the closing time, make it a quick inspection period, do you need closing costs wrapped into your loan? If so, add on an additional $2k-$5k to the purchase price and unless the homes been on the market for 30 days or more.. asking price likely won't do it. You won't be over paying because in the end, the property has to appraise. This is a stressful time but only for a short time.
Don’t get me wrong, I understand wanting the highest and best deal. We’re just at our constant end with this, I’ll have to try adding concessions onto the offer price and see what happens with that, I appreciate that little tidbit. Our agent just advised to do asking price if you’re going to ask for concessions
Nah, AT LEAST asking price. If the house is $300k but you need $10k in closing costs, you're offer should be.. $310k with the seller contributing $10k for closing costs and prepaids or... personally.. I would offer $315k. With a 7 day inspection period and ask ur lender how quick they can close. If you can close in 20 days vrs 30.. that makes a difference. You can also do escalation clauses "buyers will outbid any offer in $1000 increments, up to $315k" you could also say "buyers to have 7 day home inspection. Buyers will not ask for any repairs that are not considered a major repair" now the word major is an opinion... theres so many tricks to a good agent winning the offer for you. In crazy markets, sometimes it take several offers. Just hang in there. It's worth it.
We’re also on VA loan so I feel like that’s throwing a wrench into the mix, we’re hanging on by fingertips at this point. Hopefully we can find something under our price range that we can tack some extra offer onto!
Some agents are afraid of VA loans because they are sooo strick on the condition but.. they actually have the same requirements as an FHA, and usda loan. On the other hand... some sellers will value and respect your loan type over the rest. I hope that ends up being your case and thank you or your spouse for your service.
I appreciate it, it was an honor to be able to serve
Hopefully it’s more on the respect side, but like military, keep expectations low and you’ll never be disappointed. Just gotta get back to that
That’s honestly what I’m afraid of. My wife and I both love the 40s and 50s bungalow style. We’re currently looking at a 90s traditional with plans for to ‘age’ the house, on about 7400 sqft lot. Not big but also not small. All the new construction is nice if you can get passed the fact of cookie cutter, BUT they’re on 3,000-5,000 sqft lots, mostly driveway and house with no backyard. We have three very active dogs, that are currently enjoying an acre of land
Currently in my parents 34 ft RV, 60 miles one way to work, with a 15 month old. If it were a 600 sqft tiny home type of situation, 100% stay and pay whatever they want in rent and save but Florida summers are absolutely brutal in an RV
I get how frustrating bidding wars can be, especially in a market like this! With bank-owned foreclosures, things can be a bit trickier. Banks often have strict rules and might wait to respond to offers to get the best deal, even if you set a deadline.
It’s normal for them to accept offers over the weekend and respond on Monday, which can lead to other buyers jumping in and creating another bidding war. Keep at it, though! Every offer gets you closer to finding your home.
If you are frustrated with the market just step back and take a breather. House prices are at all-time highs and this is not how normal markets operate. The pandemic housing boom has been an anomaly, not the norm.
Until a home is actually under contract (contracts signed by both parties), a seller is never going to just stop taking offers. It sounds like you're in a competitive market. In a competitive market, you're almost never going to win if you're putting in offers asking sellers for large concessions up front. If you're offering asking price, but wanting 6% in concessions, you're actually offering well under asking. Even if a counter offer is made, and you accept, the house is still not technically under contract, and the seller can entertain whatever other offers come in. Even if it was under contract, many states allow either party to back out for any reason within a few days of signing a contract.
So basically everyone is on eggshells until keys swap hands? Could you expand on the counter-offer / acceptance / still not technically under contract? I assumed with the seller signing a counter offer, it was their acceptance to the offer
It depends on what your state laws are. Your agent can probably better explain this. An offer is not a contract, unless it is being made in the form of a contract. So for example, in my state, you can write what is called a "proposal to purchase". This is not really a binding contract, it is just a signed document outlining what your main offer points are. Once accepted, then a full contract is drafted. However, there are outs for both parties in that contract. So it really depends on what your specific state laws and practices are.
I appreciate it, that makes more sense
You need to get past the 3 day recision period, get their money in escrow, and get past the inspection period. Not accounting for sale or financing contingencies. A buyer can just stop communicating with their lender and their loan doesn't get cleared to close, for instance. You need to have all those things locked down tight in the contract.
When we were selling our house this happened. We accepted an offer and before paperwork was actually signed a better offer came in. Paperwork has to be actually signed before anything is officiall you have to be fast. We accepted and went with the highest bid. This happens alot. If you want to not get outbid you need to offer more money usually over asking price. It's a competitive market since not many people are selling homes.
How would a 24 hour counter offer deadline work on a Friday when you were told it would come Monday. 24 hours has come and gone by then. Regardless what you are learning is that in your market you cannot be coming in low. You are getting in bidding wars because your offers are not good enough.
We weren’t told it would be considered/looked at until Monday until after the all offer paperwork was signed and submitted to the listing agent. We’ve been coming in at asking price for each offer
In a competitive market, asking price isn’t good enough. In my market, well priced properties are still receiving 4-8 offers and typically will sell for 10-20% over list price the first weekend.
Most of what we’re seeing isn’t 10-20% over but maybe a few thousand or asking price with no type of concession or seller assistance (home warranty/surveys/etc). I think that’s what I’m most frustrated with. We’re not only battling high interest but absolutely absurd inflated prices and competition. We’ve considered saying screw it and renting but no one near us takes 3 dogs
You say inflated prices now.. until you buy that home and in 5 years you become a seller. You will want top $$ and be sitting happy. Don't go back to renting. That's a step backwards and makes zero sense. If you have the opportunity to buy now, do it. Get more aggressive with your offers. Trim down the closing time, make it a quick inspection period, do you need closing costs wrapped into your loan? If so, add on an additional $2k-$5k to the purchase price and unless the homes been on the market for 30 days or more.. asking price likely won't do it. You won't be over paying because in the end, the property has to appraise. This is a stressful time but only for a short time.
Don’t get me wrong, I understand wanting the highest and best deal. We’re just at our constant end with this, I’ll have to try adding concessions onto the offer price and see what happens with that, I appreciate that little tidbit. Our agent just advised to do asking price if you’re going to ask for concessions
Nah, AT LEAST asking price. If the house is $300k but you need $10k in closing costs, you're offer should be.. $310k with the seller contributing $10k for closing costs and prepaids or... personally.. I would offer $315k. With a 7 day inspection period and ask ur lender how quick they can close. If you can close in 20 days vrs 30.. that makes a difference. You can also do escalation clauses "buyers will outbid any offer in $1000 increments, up to $315k" you could also say "buyers to have 7 day home inspection. Buyers will not ask for any repairs that are not considered a major repair" now the word major is an opinion... theres so many tricks to a good agent winning the offer for you. In crazy markets, sometimes it take several offers. Just hang in there. It's worth it.
We’re also on VA loan so I feel like that’s throwing a wrench into the mix, we’re hanging on by fingertips at this point. Hopefully we can find something under our price range that we can tack some extra offer onto!
Some agents are afraid of VA loans because they are sooo strick on the condition but.. they actually have the same requirements as an FHA, and usda loan. On the other hand... some sellers will value and respect your loan type over the rest. I hope that ends up being your case and thank you or your spouse for your service.
I appreciate it, it was an honor to be able to serve Hopefully it’s more on the respect side, but like military, keep expectations low and you’ll never be disappointed. Just gotta get back to that
I made about 10 offers on houses in 2013 in a hot market. Ended up with new construction. It sucks but you cannot fight the market.
That’s honestly what I’m afraid of. My wife and I both love the 40s and 50s bungalow style. We’re currently looking at a 90s traditional with plans for to ‘age’ the house, on about 7400 sqft lot. Not big but also not small. All the new construction is nice if you can get passed the fact of cookie cutter, BUT they’re on 3,000-5,000 sqft lots, mostly driveway and house with no backyard. We have three very active dogs, that are currently enjoying an acre of land
Can you stay where you are? Sounds like a nice spot.
Currently in my parents 34 ft RV, 60 miles one way to work, with a 15 month old. If it were a 600 sqft tiny home type of situation, 100% stay and pay whatever they want in rent and save but Florida summers are absolutely brutal in an RV
Oh yeah, definitely best to find a better situation for you and your fam. Maybe a short-term rental while you take more time to look?
I get how frustrating bidding wars can be, especially in a market like this! With bank-owned foreclosures, things can be a bit trickier. Banks often have strict rules and might wait to respond to offers to get the best deal, even if you set a deadline. It’s normal for them to accept offers over the weekend and respond on Monday, which can lead to other buyers jumping in and creating another bidding war. Keep at it, though! Every offer gets you closer to finding your home.
If you are frustrated with the market just step back and take a breather. House prices are at all-time highs and this is not how normal markets operate. The pandemic housing boom has been an anomaly, not the norm.