HorrorBusiness
Well-Known Member
- May 7, 2004
- 8,741
Housing market is too far gone.
- Thread starter randomous
- Start date
bravo
what's going on there is fucking tragic and good on this guy for outlining the problem and proposing concrete solutions. turning either your or my (the US) country into a nation of renters will have deleterious effects that only serves to widen the wealth gap.
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The thing with esc clauses from the buyer's perspective, is that it feels like they actually have some involvement in the process and some sort of "say." Rather than just throwing down an offer and being stuck with a feeling of "was it too little?" or "did I just offer way too much?"
But I do agree, I'd prefer a strong offer out of the gate without dealing with them. But I've yet to come across a listing in CO where they weren't being accepted.
Not worth it. I had a listing recently with something like 22 offers (and a couple more that ended up in my spam folder so I never saw them and the lazy buyers agents didn't do their due diligence in calling/texting me to let me know they submitted).. come strong and if you don't get it move on but atleast you can feel like you tried. Offering list price and escalating 1,500 up for 25,000 is a waste, if your buyer is serious put money on the table out the gate and show me/the sellers that you're ready to get this done
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I can see that. But from a sellers perspective, In a multiple offer situation, to try and get them to be on board with an offer that offered quite a bit less but is (maybe) willing to go higher.. the seller can get in their mindset of are they really serious and if the buyer is, they might not get a chance. Just set your high price you are comfortable with as a buyer and let it roll. In this market (albeit softening lately) you might not get that second chance.. I had a buyer that asked for concessions, revised and lowered those concessions once in a multiple offer situation, and didn't get it. When I told them they didn't get it they immediately agreed to adjust another $7500 but it was too late. The next offer they wrote they came strong out the gate, got it and are still happy living there
There's too many variables to this shit lol
It's interesting to watch how quickly their mindset changes when it comes to submitting offers, after they lose their first one or two.
My gf got a call a couple days ago from a woman she sold a house to a few years back, she’s moving out of the area now and needs to sell. Comps out to ~$500k max.
“Let’s list it at $600k and see what happens!”
“Let’s list it at $600k and see what happens!”
outcome?My gf got a call a couple days ago from a woman she sold a house to a few years back, she’s moving out of the area now and needs to sell. Comps out to ~$500k max.
“Let’s list it at $600k and see what happens!”
“Well, if we list that high the message we are sending to the market is that we are just testing the waters, serious buyers won’t even look let alone make offers. We will eventually have to lower the price but your listing will be stale at that point and interest rates will be higher. If we list closer to the comps we will get multiple offers very quickly and YOU will have all the leverage.”
She went for it. Most people with these impulses can be brought back to reality in my experience, if you do it carefully and back it up with data.
Menger
OT Supporter
- Nov 23, 2011
- 23,781
How comfortable should I be just offering the moon and letting the appraisal gap act as the real ceiling? I’m happy to PM deets if anyone wants to help.
Menger
OT Supporter
- Nov 23, 2011
- 23,781
k based on your advice I ditched the escalation clause and just offered something way above list with a $15k appraisal gap
hopefully that's enough
hopefully that's enough
Good luck.k based on your advice I ditched the escalation clause and just offered something way above list with a $15k appraisal gap
hopefully that's enough
Menger
OT Supporter
- Nov 23, 2011
- 23,781
Boing
OT Supporter
- Jun 30, 2007
- 88,096
Two more homes on my street just went up for sale.
One is the same model as mine but with the less cars garage option... Fucking thing is listed at almost 60% more than I paid in 2019.
The other one is like two houses and it's listed 15k higher. Different model but square footage is like 40 more. Same room counts.
Still waiting to see what my neighbors house sold for. The listing was taken down the day after it was put up pending a sale.
One is the same model as mine but with the less cars garage option... Fucking thing is listed at almost 60% more than I paid in 2019.
The other one is like two houses and it's listed 15k higher. Different model but square footage is like 40 more. Same room counts.
Still waiting to see what my neighbors house sold for. The listing was taken down the day after it was put up pending a sale.
EdgeOfSanity
OT Supporter
I bought my house late last year and got it under market. Houses that are 1000sq ft less than mine are now selling for what I paid for mine on this street. No where near as nice either.
AndyP
OT Supporter
- Jun 17, 2004
- 18,435
Its crazy. We moved/bought our house in 2019 for ~$700. Last year the house across the street (same sq footage and rooms) sold for $1.25m. No way we would have afforded our area if we didn't buy when we did.
I'd say they are looking out for the best interest of their seller. Why protect a buyers bottom end when you know they might be willing to go thousands higher.
It's about the amount of time it takes to sort through multiple esc clauses. Some sellers don't want to deal with that shit either, so I get it. But aside from that, there's no reason not to accept them.
If the buyer sets a max on the clause, the seller knows what amount their willing to go up to anyhow. So really any negotiation there is already lost. But it does offer the seller a guaranteed way to make more on their home.
Of course, in the event someone comes out with a higher offer with no escalation, they're probably winning anyway.
Paid off most debt. My income pays bills, hers goes to savings.
I was having that conversation with someone the other day. Then today, an investor straight up ball smashes a great offer with $150k over asking.
It's aight bro I bet he ain't rich in spiritI was having that conversation with someone the other day. Then today, an investor straight up ball smashes a great offer with $150k over asking.
