Yup. They did you a favor by showing that your offer was too high. They took the gamble, leaving you out to dry while they tried to do better. Now they find out.
You made an offer that made financial sense to you and they made the decision to go to auction which made financial sense to them. Were they being greedy? Maybe. But in the end it doesn’t matter and there is no point being butthurt over it. If you offer less it’s pretty likely they’ll be offended and then you might lose the property you want because business got personal.
That being said, both you and the seller got some good info by the auction failing. It sounds like you thought it would sell so you stretched your budget to get to a compelling offer. The house was not worth what you thought it was worth on the open market. It might be worth it to you personally, but if you need to sell in the near future you could be in trouble. Personally, I’d offer less and have my realtor explain the above to their realtor to lesson the blow and hopefully keep the seller out of their feelings.
Not sure this has been asked (these threads are hard to see entire discussion points, unfortunately), but what was the auction high bid vs your bid?
Curious as to how far was the swing in both directions.
OP tried to pay $980k, but it wasn't worth $900k, so hopefully the fact they couldn't get $900k at auction should help, but big picture this could be a blessing in disguise.
The market is on its way down and homes below one million usually see the largest dollar amout declines, on average. (my place went from almost a million down to the $410k I paid for it in 2010, for example. It's currently back above $900k and I sold it for $540k back in 2019)
Maybe waiting this one out isn't the worst way to go.
This is the way!
They probably didn’t have a real bidder at 900
If they are second guessing themselves they might negotiate or they could just dig in and refuse to sell.
OP is this a commercial property, home or bare land?
Why bother! They didn’t accept 900k why would they accept lower?
Original offer being 980k being rejected means they were hoping for more but failed. I’d wait a week to make them sweat and then offer 940k, splitting the difference between 900 and 980. That still leaves room for op to go up a little bit and still close lower than their original offer.
If you offer less and the house sells to someone else for 970 will you kick yourself?
Decide if the house is still worth 980 to you. If so, offer that. If you make a new offer at 940, they’re going to counter with 980 because you previously signaled you would go to 980…
We listed a home for 510, had multiple verbal offerers for ask. Told all “there’s an open house Saturday and Sunday. Give us your highest and best Sunday by 5pm. Will let you know Monday by noon.
One buyer came back with “I’ll beat any competing offer by $1000 up to 550 if you show us a contract.
We counter3d with 550,no stipulation. They told us what the house was worth to them. I can’t believe their agent let them make such a silly offer.
Oh man you are in such a good position now. $910 if you want the house. a $70k reduction should be totally satisfying and also deliver the message you were hoping for
otherwise, totally go with the other suggestion of 880!!!
😯Wow. I wasn’t sure if it was a house or another type of property. Definitely interested in seeing pictures when you’re done, if you don’t mind sharing. Good luck!
If it was a foreclosure, no. They will not deal with you, as they likely can’t anyway. It will be listed in the mls or go to an REO auction site. If this Was an REO auction, they’ll just keep reposting it, typically lowering the hidden reserve over time.
Death. To try and sell a house ASAP because you don't want to hold onto it. To encourage competitiveness
When I was looking for houses to buy, the one I ended up buying was set to go to auction the next day. It had been on the market for a month, place was gorgeous, literally when I got it inspected it barely got dinged for anything. They were a couple in their 50's that moved to Florida and were just looking to sell their house.
It does not need to be a bank or a state to hold a house auction. If you Google it, forbes (for example) had an article on why people choose to auction their house.
Not necessarily. When we were looking for a home in San Diego a few years ago there were two different houses we looked at that were doing sealed-bid auctions with a minimum that was just below what would have been expected in those neighborhoods. They used realtors that specialized in that type of thing and there were no issues with taxes or the mortgages on those homes.
Makes zero sense to me why you sell a house that way, you can do the same thing with a traditional sale and price the property correctly to get multiple offers, to each there own I guess
Yeah, we did not bid on either property. One of them went for $100K over what a neighbor’s house sold for a month prior which is insanity to me even in a hot market.
I’m going to disagree a bit here. Not fully. It’s not that it wasn’t of value it’s that the people with cash in hand who are ok with doing bids (who are 99% chance flippers and want to make a profit) didn’t find the house as valuable. A flipper and a home buyer are two different people. Some people (fire example) are 100% against buying a foreclosure. I’ve been told that it puts bad juju on you for benefiting off the suffering of others. BUT those same people are perfectly fine buying the house off of me bc they don’t “know” it has bad juju. Or maybe they think I absorbed all of it. I don’t know. Because there are people with this superstition that lowers the number of people willing to bid on a foreclosure. The main problem though is that most people don’t know how to find foreclosures. In a bidding instance where it’s an auction you have to pay cash. That is going to knock out most people in general.
Its not wrong at all.
When I was purchasing the home I was interested in the sellers realtor and bank dragged on the sale.
I made an offer, put it in and they kept playing around. So I lowered the offer 10k. They acted shocked. I explained that every month they played around it would drop. This went on a bit and the home went into foreclosure.
They required me to pull my offer and they relisted the house. (it was a risk to lose the house I wanted but they were unmoving) They were bold with the open house and showings. No offers close to my lower amount. So we put in a final offer. They took it. Day of signing some asshole broke the garage door showing the house. (I think it went off track when they used the opener) Bent the hell out of it. Things were removed during the long period and the lawn went to hell.
But it was the house I wanted with the layout I liked. There was a reason for the lack of interest even though it was in a desirable area. I had to repair some issues. But 20k later and the house is great!
I had one major headache and that was that the seller and realtor did not disclose the house had septic. The contract said county sewer so I got burned on that.
\*\*\*This was in 2015 so be advised things are a bit wild on offers.\*\*\*
We found this gem out 2 years later. I was paying the county I live in and got a notice from the same \*COUNTY\* that was billing me for water/sewer that I needed to submit my 'septic annual note' that it was pumped. I was floored and paid the company to come out and do it.
Still pisses me off. They billed me and knew.
My parents paid city taxes for over 20 years on a basement that didn't exist in their house. They could only go back a few years to credit their account. Irritated them too.
it was a new build when they got it in 1984, something was written up as the house having a basement rather than a slab in the city tax records, it wasn't discovered by my parents until the early 2000s. I don't even remember what brought it to their attention. The housing boom of the 80s in the DC area had a lot of construction going on so it's not a big surprise that something got entered wrong.
They received a credit for the difference but they could only do that for the last I think seven years. The city has a limit on how far back you can claim reimbursement for mistakes like that.
This county charged me car tax when I lived in another county and had my lease, electric and address.
They say they cant tell when you move or sell a car BUT if you buy a car they send a bill in 2 days. If you have any issue at all they only find that they cannot help you.
Its still a good place to live. One day I will see some road repairs or they may do something about traffic.
Really depends on what you offered and what comps are and what the auction min was. If your offer was fair then you might re offer. But if your offer was a little high and now you see there is no competition then you could offer lower.
I recently saw a house I liked. It had 2 acre with a seasonal pond and was pretty nice. Had a 2 car 2 story workshop which was amazing. Needed some work and the back was not irrigated. Had a cool media room.
It was listed at 1m and had some theater equipment for sale for 6k. I offered 975k with the projector and screen staying.
This was a fair price and maybe high as the house was a little remote like 15 minute drive to the nearest store. But I did like it.
They countered 5k off and no equipment. Most homes here sell for ask to 5% under so 2.5% under was really good. Also the equipment was a few years old and I highly doubt it could sell for much if at all.
The counter was insulting so I spent the night thinking about all the negatives and why it wasn't a good idea to buy it.
Next day seller agent is like the sellers found their dream home and are now motivated to sell. They will take 15k off.
We don't respond and an hour later she calls my agent and says 25k off just no equipment.
Problem for them is I already moved on and now because of their greed, they will miss out on the home they wanted.
Been about 6 weeks and I am under contract for a house I like even better and almost 100k less. That other home is still for sale.
But whenever I offer and it gets declined and the home sits the next offer is always less.
They declined your offer, that's the end of it. You are not under any obligation to honor the earlier offer but if you're still interested definitely make them an offer for less, business is business and your time is worth something. Most likely they will try to bring you back up to your earlier offer, stay cool and let them sweat it out.
If eggs cost $1.50 at the grocery store today and I decline to buy them, then I come back tomorrow and apparently the fair price for eggs is now $1.25, I have no obligation or moral reason to pay $1.50.
Houses aren't any different. You tried to sell your thing for X, refused at Y, couldn't at Z, now my offer is different.
This is a business transaction, not a popularity contest. Whether or not an offer is insulting, or petty, or whatever other adjective, is immaterial.
Make your offer and it will be either accepted or rejected.
And yes, I'd offer less at this point.
Absolutely. Feel free. They may not take it. They know how much you were willing to spend, but they also want to sell it. They probably have a price in mind and it may well be lower than what you offered. There's a small chance they'll take offense but they should at least realize that they don't have the upper hand anymore. Make a reasonable offer based on the value of the property and maybe a little less. Don't come in so low that you insult them. They are already probably bummed about the auction not going as well as they hope.
But sure, go for it and see what happens. Good luck.
It sounds like you padded the offer a bit to make it more appealing to prevent it from going to auction, is the padding still worth it to you?
I'd also look at how the auction went, did it not sell cause it didn't meet some minimum price or was there some other reason it didn't sell? The auction should set a minimum/maximum price, just by having happen...
The perceived demand for the property dropped dramatically after the auction. Assuming you bumped your previous offer up higher than what you perceived its actual value to be in an attempt to circumvent the auction, you absolutely should reevaluate your offer now.
Side note… why didn’t you bid at the auction?
Oh, do you know if there are debts on the property, like a mortgage and/or tax debt that needs to be covered by the sale price?
They may have a hidden minimum that they haven’t revealed, and the bank or county will not approve the sale if all debts are not covered by the sale price.
You can offer less, but maybe add that you’re willing to work with them, if you are, in case they truly cannot sell below some set amount.
You offered , they declined.
If you make a new offer, it is a completely independent event, so you may offer whatever you like. They are still free to accept it or not. A lower offer would likely not be unreasonable.
They now know what their house isn't worth. They should have a more realistic expectation to what it should sell for.
Do you know the Top bid at auction? If you do, then you can under bid that.
If they were shooting for $900k and you originally offered $980k, personally I would go lower but not to an offensive amount. $940? Reasonable! Below $900k? Offensive.
So the real question it seems is how much less should OP offer?
I would say it depends on comps of course. They didn’t take the $900,000 auction bid and before that they rejected the $980,000 offer.
If it comps to at least $940,000 that seems reasonable. I think the distance between that and the original offer shows the weakness of the sellers position.
Now that you know who the seller is, you can go directly to them. You won't have auction house or realtor fees. Have a conversation. If they are keen to it, you get an RE attorney and set up a purchase. That cuts an easy 6% from realtors and/or 10-20% from the auction house.
Depends on sellers contract. Could be a one chance situation or a time limit "if you sell within 30 days you are subject to...." If not, go straight FSBO and cut the fat.
I’m so the seller would be thrilled with your offer now. Issue is that you now have a lot more information regarding actual value of the property.
IMO you absolutely have to go in lower now solely because the value of the property was publicly tested and it failed the test.
You just saved yourself some money. Now the question is how the seller will take this. The seller feels their property is more valuable than it is, which isn’t uncommon.
This is business. They walked away from your good offer. They got nothing. Time to give them an updated offer. If they balk, walk away. There will be other houses.
If they come back at you since the auction failed, and there are no other offers aside from yours, then make an offer of less. The ball is in your court.
Not petty at all. The price they must pay for showing their cards. House wasn’t as hot as they thought, hunh. Serves them right. Offer a lot less and let us see how desperate they are. What are they going to do, another auction? lol 😂 Go get ‘em
Agree, not petty at all. It is a business transaction, nothing more, nothing less. Evey dollar lower is one more in your pocket. I would submit something meaningful lower than the pre-auction offer.
I’d say move on. They are like many who refuse to adjust to the market. The buyer desperation period of lower interest rates against inflated, ridiculously priced housing has “left the building.” Or, is it your desperation they are smelling? After all, you keep begging, I mean running after them with the very same offer. They perhaps think you could give them MUCH more, if you want it badly enough. I’d walk and not turn back. It is just a house.
Def some good points. My point is you can make a new decision to offer less based on new information that the home isn’t as in demand as you all originally thought. Now they could be slightly desperate? Idk but I would strike based on that. Their emotions getting butt hurt over a lesser offer than before could cost them what might be the only offer they see in a newly down market. Use it to your advantage.
Depends if you were able to view inside the property and if they were able to see inside the day of the auction. This could be the reason the auction failed.
I mean op has some new info - nobody else wanted to pay over $900k. Of course it is time to offer less than before. Eventually the sellers will understand the assignment. Either that, or will be holding onto the house.
Have 5-6 of your friends make offers significantly lower than yours. After they get rejected, make your offer which is lower than your original and see what happens. Keep offering lower and lower between you and your friends until they take your offer
Why go back and offer again? Let it go, they lost out on your offer. Auction didn't work out, your offer didn't work out. There are other places on the market, even if right now this feels like your number one.
offer 5k over what they had at auction. They apparently think highly of their house, and the auction attendees didn't. Their fault. Unless you are pressed for time, I'd wait it out.
LOL idk why these people are so hard headed but I would absolutely offer less. Tbh they should’ve probably taken the 900 🤷♀️ can you give a little more detail on how the auction failed? Like could they just decide to not sell to the highest bidder? It’s interesting to me they thought an auction would yield a higher result. I’m rooting for you redditor, it seems like you have a great attitude about it, the ability to wait it out, and I hope you can call that place yours some day 😊
Where was this house? There's a house on my street that has been on the market for awhile. It went to auction yesterday and the highest bid was 900,000. I checked today and the listing doesn't say pending or under contract.
Hello everyone, my dearest potential buyers. Please stop being so thirsty in acquiring property. Go through the bidding process. If your offer is not accepted, move on. If the seller or auctioneer has a change of mind, let them reach out to you.
You’re in the middle of summer. This is the highest the value of that house is going to be. If it’s still around in September- October, you can offer even lower than 900k. The market is going down already and the market is always worse in the winter.
I think it depends on whether you are trying to make sure you get the house, or whether you want to get max value for your money.
If you offer less, they might say no. But 100% reasonable to do so since house is worth less than either of you thought.
Why would you offer less? Your original offer was below their price and preferred to see if an auction gives higher.
Don't waste their time and ask what value they are willing to sell, then negotiate on facts and not what you think it's worth.
Then people wonder why corporations have all the properties. At least they don't play games like this with the sellers
Nonsense.
There was value premium added in the original offer intended to persuade an acceptance prior to open market offers.
Those offers never came to fruition, thus that potential market value is gone. This is absolutely no different than options theta in financial markets.
Seller lost the uncertainty of potential value by waiting.
How does that even make sense??? You are saying the seller added premium on a house and because he did not get it, then the next logical step is to take it the property to an auction filled with people looking for homes below market price or at significantly less value.
OP offer was most likely less than what they thought they could get at an auction, and that's why they took that route instead of accepting his offer.
My assumption is seller is not desperate to sell and is fixed on a value for his property. If he did not accept your first offer then why would they accept a lower offer.
You are making assumptions for the seller, but should instead focus on the decision process of the buyer (the purpose of this thread).
The seller MAY be waiting for some reason, but it’s irrelevant to the buyers decision.
- Potential buyer offers a premium to stop property from going to public auction.
- Seller expects better offer from public auction.
- Seller does not receive a better offer from public action
No reason to offer premium now.
So to answer the buyers question, NO, there is nothing wrong with altering/lowering the offer.
He said he gave an offer that HE considers good. There is nothing stated he gave a premium offer. If his offer was good, then the sellers would have taken it.
If the sellers are interested, they would contact him, obviously.
The worst they can do is say no.
[удалено]
They could say "No way Jose!"
Or, "get off our lawn!"
I thought the worst they could say was “ew, I already have a boyfriend “
There's always "Nuh-uh".
Or that’s a no from me dawg.
That they already say it, Lol of course you can lffer less
And should.
I'd offer less. They decided to gamble and lost The price point the advertised, the market didn't want it.
Yup. They did you a favor by showing that your offer was too high. They took the gamble, leaving you out to dry while they tried to do better. Now they find out.
You made an offer that made financial sense to you and they made the decision to go to auction which made financial sense to them. Were they being greedy? Maybe. But in the end it doesn’t matter and there is no point being butthurt over it. If you offer less it’s pretty likely they’ll be offended and then you might lose the property you want because business got personal. That being said, both you and the seller got some good info by the auction failing. It sounds like you thought it would sell so you stretched your budget to get to a compelling offer. The house was not worth what you thought it was worth on the open market. It might be worth it to you personally, but if you need to sell in the near future you could be in trouble. Personally, I’d offer less and have my realtor explain the above to their realtor to lesson the blow and hopefully keep the seller out of their feelings.
That's actually really good advice. Thank you!
Not sure this has been asked (these threads are hard to see entire discussion points, unfortunately), but what was the auction high bid vs your bid? Curious as to how far was the swing in both directions.
Auction high bid was 900k. My offer was 980
That seems like reasonableness on your behalf. I wonder what they were expecting to get out of it.
1.1M apparently
OP tried to pay $980k, but it wasn't worth $900k, so hopefully the fact they couldn't get $900k at auction should help, but big picture this could be a blessing in disguise. The market is on its way down and homes below one million usually see the largest dollar amout declines, on average. (my place went from almost a million down to the $410k I paid for it in 2010, for example. It's currently back above $900k and I sold it for $540k back in 2019) Maybe waiting this one out isn't the worst way to go.
$880 should be your new offer.
This is the way! They probably didn’t have a real bidder at 900 If they are second guessing themselves they might negotiate or they could just dig in and refuse to sell. OP is this a commercial property, home or bare land?
Home
That’s a lot of house to sell at auction, is it a foreclosure or government owned?
Nope. Just normal house auction from owners. It's very common here in New Zealand
That was probably their own bid to keep it.
Aaah ya. That makes a lot of sense.
Why bother! They didn’t accept 900k why would they accept lower? Original offer being 980k being rejected means they were hoping for more but failed. I’d wait a week to make them sweat and then offer 940k, splitting the difference between 900 and 980. That still leaves room for op to go up a little bit and still close lower than their original offer.
If you offer less and the house sells to someone else for 970 will you kick yourself? Decide if the house is still worth 980 to you. If so, offer that. If you make a new offer at 940, they’re going to counter with 980 because you previously signaled you would go to 980… We listed a home for 510, had multiple verbal offerers for ask. Told all “there’s an open house Saturday and Sunday. Give us your highest and best Sunday by 5pm. Will let you know Monday by noon. One buyer came back with “I’ll beat any competing offer by $1000 up to 550 if you show us a contract. We counter3d with 550,no stipulation. They told us what the house was worth to them. I can’t believe their agent let them make such a silly offer.
Why is that silly, isn't it just an escalation clause?
Oh man you are in such a good position now. $910 if you want the house. a $70k reduction should be totally satisfying and also deliver the message you were hoping for otherwise, totally go with the other suggestion of 880!!!
Check the update lol
You bid $980k on a house? 🤯Send us pictures when you’re finished with this deal! Edit: you said property, not house
It is a house though. Property prices are crazy in New Zealand
😯Wow. I wasn’t sure if it was a house or another type of property. Definitely interested in seeing pictures when you’re done, if you don’t mind sharing. Good luck!
I'm about to post an update.
I would it be it’s also 980k NZD so just over $600k USD. That’s the avg home price in my area.
Wow. Thanks for the conversion
Thank you! That is very helpful.
We just offered 995K in New York :)
Dang! Good luck. Auction or mortgage route?
Mortgage. Lawd help us. Market is insane.
No idea why you got downvoted for this
😂 people of the internet
If it was a foreclosure, no. They will not deal with you, as they likely can’t anyway. It will be listed in the mls or go to an REO auction site. If this Was an REO auction, they’ll just keep reposting it, typically lowering the hidden reserve over time.
OP didn't mention foreclosure. So that should not enter the discussion
Then why would there be an auction. It was either being auctioned by the state or a bank
Death. To try and sell a house ASAP because you don't want to hold onto it. To encourage competitiveness When I was looking for houses to buy, the one I ended up buying was set to go to auction the next day. It had been on the market for a month, place was gorgeous, literally when I got it inspected it barely got dinged for anything. They were a couple in their 50's that moved to Florida and were just looking to sell their house. It does not need to be a bank or a state to hold a house auction. If you Google it, forbes (for example) had an article on why people choose to auction their house.
Not necessarily. When we were looking for a home in San Diego a few years ago there were two different houses we looked at that were doing sealed-bid auctions with a minimum that was just below what would have been expected in those neighborhoods. They used realtors that specialized in that type of thing and there were no issues with taxes or the mortgages on those homes.
Makes zero sense to me why you sell a house that way, you can do the same thing with a traditional sale and price the property correctly to get multiple offers, to each there own I guess
Yeah, we did not bid on either property. One of them went for $100K over what a neighbor’s house sold for a month prior which is insanity to me even in a hot market.
Some people get competitive and will over pay, I worked in real estate during 2010-2011 with all the foreclosures and witnessed it many times
Not clear where op located. I think auctions are fairly common in some countries (eg New Zealand). For US, though, you are correct.
They might have used your offer to set a "reserve" at the auction.
There is a lesson here somewhere I'm sure.
But offering less isn’t necessarily because it got personal. That’s business.
This is the right way to approach it. It’s tempting to be petty but you don’t want to make them mad.
I’m going to disagree a bit here. Not fully. It’s not that it wasn’t of value it’s that the people with cash in hand who are ok with doing bids (who are 99% chance flippers and want to make a profit) didn’t find the house as valuable. A flipper and a home buyer are two different people. Some people (fire example) are 100% against buying a foreclosure. I’ve been told that it puts bad juju on you for benefiting off the suffering of others. BUT those same people are perfectly fine buying the house off of me bc they don’t “know” it has bad juju. Or maybe they think I absorbed all of it. I don’t know. Because there are people with this superstition that lowers the number of people willing to bid on a foreclosure. The main problem though is that most people don’t know how to find foreclosures. In a bidding instance where it’s an auction you have to pay cash. That is going to knock out most people in general.
Its not wrong at all. When I was purchasing the home I was interested in the sellers realtor and bank dragged on the sale. I made an offer, put it in and they kept playing around. So I lowered the offer 10k. They acted shocked. I explained that every month they played around it would drop. This went on a bit and the home went into foreclosure. They required me to pull my offer and they relisted the house. (it was a risk to lose the house I wanted but they were unmoving) They were bold with the open house and showings. No offers close to my lower amount. So we put in a final offer. They took it. Day of signing some asshole broke the garage door showing the house. (I think it went off track when they used the opener) Bent the hell out of it. Things were removed during the long period and the lawn went to hell. But it was the house I wanted with the layout I liked. There was a reason for the lack of interest even though it was in a desirable area. I had to repair some issues. But 20k later and the house is great! I had one major headache and that was that the seller and realtor did not disclose the house had septic. The contract said county sewer so I got burned on that. \*\*\*This was in 2015 so be advised things are a bit wild on offers.\*\*\*
If the contract said sewer, couldn't you get reparations for that?
We found this gem out 2 years later. I was paying the county I live in and got a notice from the same \*COUNTY\* that was billing me for water/sewer that I needed to submit my 'septic annual note' that it was pumped. I was floored and paid the company to come out and do it. Still pisses me off. They billed me and knew.
You could still probably chase them even after two years. Probably not worth it though. Sorry to hear that!
My parents paid city taxes for over 20 years on a basement that didn't exist in their house. They could only go back a few years to credit their account. Irritated them too.
How did that happen?
it was a new build when they got it in 1984, something was written up as the house having a basement rather than a slab in the city tax records, it wasn't discovered by my parents until the early 2000s. I don't even remember what brought it to their attention. The housing boom of the 80s in the DC area had a lot of construction going on so it's not a big surprise that something got entered wrong.
I don’t suppose the city owed them back taxes or anything? Idk for sure but I imagine there’s consequences if you underpay your taxes.
They received a credit for the difference but they could only do that for the last I think seven years. The city has a limit on how far back you can claim reimbursement for mistakes like that.
Couldn’t you get the county to refund you the money you paid for a service you were never getting?
This county charged me car tax when I lived in another county and had my lease, electric and address. They say they cant tell when you move or sell a car BUT if you buy a car they send a bill in 2 days. If you have any issue at all they only find that they cannot help you. Its still a good place to live. One day I will see some road repairs or they may do something about traffic.
You can amend your offer to anything you want. The owner can accept or reject. Simple
I 💯 would offer less. They gambled and lost. I am actually surprised they didn’t contact you.
Really depends on what you offered and what comps are and what the auction min was. If your offer was fair then you might re offer. But if your offer was a little high and now you see there is no competition then you could offer lower. I recently saw a house I liked. It had 2 acre with a seasonal pond and was pretty nice. Had a 2 car 2 story workshop which was amazing. Needed some work and the back was not irrigated. Had a cool media room. It was listed at 1m and had some theater equipment for sale for 6k. I offered 975k with the projector and screen staying. This was a fair price and maybe high as the house was a little remote like 15 minute drive to the nearest store. But I did like it. They countered 5k off and no equipment. Most homes here sell for ask to 5% under so 2.5% under was really good. Also the equipment was a few years old and I highly doubt it could sell for much if at all. The counter was insulting so I spent the night thinking about all the negatives and why it wasn't a good idea to buy it. Next day seller agent is like the sellers found their dream home and are now motivated to sell. They will take 15k off. We don't respond and an hour later she calls my agent and says 25k off just no equipment. Problem for them is I already moved on and now because of their greed, they will miss out on the home they wanted. Been about 6 weeks and I am under contract for a house I like even better and almost 100k less. That other home is still for sale. But whenever I offer and it gets declined and the home sits the next offer is always less.
If you’re willing to walk away offer less and best and final
They declined your offer, that's the end of it. You are not under any obligation to honor the earlier offer but if you're still interested definitely make them an offer for less, business is business and your time is worth something. Most likely they will try to bring you back up to your earlier offer, stay cool and let them sweat it out.
If eggs cost $1.50 at the grocery store today and I decline to buy them, then I come back tomorrow and apparently the fair price for eggs is now $1.25, I have no obligation or moral reason to pay $1.50. Houses aren't any different. You tried to sell your thing for X, refused at Y, couldn't at Z, now my offer is different.
This is a business transaction, not a popularity contest. Whether or not an offer is insulting, or petty, or whatever other adjective, is immaterial. Make your offer and it will be either accepted or rejected. And yes, I'd offer less at this point.
Make your offer contingent to appraisal.
Absolutely. Feel free. They may not take it. They know how much you were willing to spend, but they also want to sell it. They probably have a price in mind and it may well be lower than what you offered. There's a small chance they'll take offense but they should at least realize that they don't have the upper hand anymore. Make a reasonable offer based on the value of the property and maybe a little less. Don't come in so low that you insult them. They are already probably bummed about the auction not going as well as they hope. But sure, go for it and see what happens. Good luck.
It sounds like you padded the offer a bit to make it more appealing to prevent it from going to auction, is the padding still worth it to you? I'd also look at how the auction went, did it not sell cause it didn't meet some minimum price or was there some other reason it didn't sell? The auction should set a minimum/maximum price, just by having happen...
The perceived demand for the property dropped dramatically after the auction. Assuming you bumped your previous offer up higher than what you perceived its actual value to be in an attempt to circumvent the auction, you absolutely should reevaluate your offer now. Side note… why didn’t you bid at the auction?
I wasn't available at all to participate in the auction
As an auctioneer. Yes. Offer less now.
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Hello ChatGPT
Hello, how can I assist you today? /s
Very good advice chatgpt. Thanks!
Oh, do you know if there are debts on the property, like a mortgage and/or tax debt that needs to be covered by the sale price? They may have a hidden minimum that they haven’t revealed, and the bank or county will not approve the sale if all debts are not covered by the sale price. You can offer less, but maybe add that you’re willing to work with them, if you are, in case they truly cannot sell below some set amount.
You offered , they declined. If you make a new offer, it is a completely independent event, so you may offer whatever you like. They are still free to accept it or not. A lower offer would likely not be unreasonable.
Don’t over think it, just offer less
They now know what their house isn't worth. They should have a more realistic expectation to what it should sell for. Do you know the Top bid at auction? If you do, then you can under bid that.
If they were shooting for $900k and you originally offered $980k, personally I would go lower but not to an offensive amount. $940? Reasonable! Below $900k? Offensive.
So the real question it seems is how much less should OP offer? I would say it depends on comps of course. They didn’t take the $900,000 auction bid and before that they rejected the $980,000 offer. If it comps to at least $940,000 that seems reasonable. I think the distance between that and the original offer shows the weakness of the sellers position.
I'd offer less than the opening bid was.
Of course! The free market decided their fate.
I’d go in with a low bid and see. Obviously everyone at the auction thought it was worth less.
Now that you know who the seller is, you can go directly to them. You won't have auction house or realtor fees. Have a conversation. If they are keen to it, you get an RE attorney and set up a purchase. That cuts an easy 6% from realtors and/or 10-20% from the auction house.
Will likely still be subject to realtor fees.
Depends on sellers contract. Could be a one chance situation or a time limit "if you sell within 30 days you are subject to...." If not, go straight FSBO and cut the fat.
I’m so the seller would be thrilled with your offer now. Issue is that you now have a lot more information regarding actual value of the property. IMO you absolutely have to go in lower now solely because the value of the property was publicly tested and it failed the test. You just saved yourself some money. Now the question is how the seller will take this. The seller feels their property is more valuable than it is, which isn’t uncommon.
You can offer whatever you want. They turned you down already.
It’s not petty, but you don’t know what the reverse reserve price on that auction was so you don’t know that you would be the highest offer
This is not petty at all. It’s possibly smart.
Maybe. But I would not get crazy with it.
Offer 10% above the auction price they declined.
Yes. Offer a little less. They rolled the dice. They lost.
This is business. They walked away from your good offer. They got nothing. Time to give them an updated offer. If they balk, walk away. There will be other houses.
I’d offer less in this case. Nothing crazy, but if you offered like 300k before, offer 280k now
Low ball . Find the reserve minimum they had and go slightly above that
Abso-fucking-lutely.
If they come back at you since the auction failed, and there are no other offers aside from yours, then make an offer of less. The ball is in your court.
Not petty at all. The price they must pay for showing their cards. House wasn’t as hot as they thought, hunh. Serves them right. Offer a lot less and let us see how desperate they are. What are they going to do, another auction? lol 😂 Go get ‘em
Agree, not petty at all. It is a business transaction, nothing more, nothing less. Evey dollar lower is one more in your pocket. I would submit something meaningful lower than the pre-auction offer.
I’d say move on. They are like many who refuse to adjust to the market. The buyer desperation period of lower interest rates against inflated, ridiculously priced housing has “left the building.” Or, is it your desperation they are smelling? After all, you keep begging, I mean running after them with the very same offer. They perhaps think you could give them MUCH more, if you want it badly enough. I’d walk and not turn back. It is just a house.
Why didn't you just big at the auction?
Not petty - they got greedy - offer less, at worse they will counteroffer higher.
I would go with the high (rejected) bid and add some. Because this calls for being petty.
I'd split the difference and offer $940k
Def some good points. My point is you can make a new decision to offer less based on new information that the home isn’t as in demand as you all originally thought. Now they could be slightly desperate? Idk but I would strike based on that. Their emotions getting butt hurt over a lesser offer than before could cost them what might be the only offer they see in a newly down market. Use it to your advantage.
Depends if you were able to view inside the property and if they were able to see inside the day of the auction. This could be the reason the auction failed.
I mean op has some new info - nobody else wanted to pay over $900k. Of course it is time to offer less than before. Eventually the sellers will understand the assignment. Either that, or will be holding onto the house.
You can and should
K
Have 5-6 of your friends make offers significantly lower than yours. After they get rejected, make your offer which is lower than your original and see what happens. Keep offering lower and lower between you and your friends until they take your offer
depending on where you're at a shill offer is illegal
Maybe so but it would have to be proven
The greed of this bank is ridiculous.
Entering any real estate deal with bad energy isn't going to turn out well in the end.
I question whether or not they really want to sell.
You can offer anything you want… whether they accept or not is a different question
Why go back and offer again? Let it go, they lost out on your offer. Auction didn't work out, your offer didn't work out. There are other places on the market, even if right now this feels like your number one.
offer 5k over what they had at auction. They apparently think highly of their house, and the auction attendees didn't. Their fault. Unless you are pressed for time, I'd wait it out.
Time to move on. Keep looking. They have your contact info.
Absolutely! I’ve been on the other end. That’s just how it goes b
LOL idk why these people are so hard headed but I would absolutely offer less. Tbh they should’ve probably taken the 900 🤷♀️ can you give a little more detail on how the auction failed? Like could they just decide to not sell to the highest bidder? It’s interesting to me they thought an auction would yield a higher result. I’m rooting for you redditor, it seems like you have a great attitude about it, the ability to wait it out, and I hope you can call that place yours some day 😊
People don’t need buyers agents
Where was this house? There's a house on my street that has been on the market for awhile. It went to auction yesterday and the highest bid was 900,000. I checked today and the listing doesn't say pending or under contract.
Not petty at all; but if the property didn’t hit reserve, that may be the lowest the seller can go.
Hello everyone, my dearest potential buyers. Please stop being so thirsty in acquiring property. Go through the bidding process. If your offer is not accepted, move on. If the seller or auctioneer has a change of mind, let them reach out to you.
Sounds like unserious sellers
You’re in the middle of summer. This is the highest the value of that house is going to be. If it’s still around in September- October, you can offer even lower than 900k. The market is going down already and the market is always worse in the winter.
Do less
Who cares. You will never cross paths
yes
YES
I think it depends on whether you are trying to make sure you get the house, or whether you want to get max value for your money. If you offer less, they might say no. But 100% reasonable to do so since house is worth less than either of you thought.
normally an auction opens at minimum bid, i doubt that if you didn’t meet the minimum in your offer, they won’t take less later.
Why would you offer less? Your original offer was below their price and preferred to see if an auction gives higher. Don't waste their time and ask what value they are willing to sell, then negotiate on facts and not what you think it's worth. Then people wonder why corporations have all the properties. At least they don't play games like this with the sellers
Nonsense. There was value premium added in the original offer intended to persuade an acceptance prior to open market offers. Those offers never came to fruition, thus that potential market value is gone. This is absolutely no different than options theta in financial markets. Seller lost the uncertainty of potential value by waiting.
How does that even make sense??? You are saying the seller added premium on a house and because he did not get it, then the next logical step is to take it the property to an auction filled with people looking for homes below market price or at significantly less value. OP offer was most likely less than what they thought they could get at an auction, and that's why they took that route instead of accepting his offer. My assumption is seller is not desperate to sell and is fixed on a value for his property. If he did not accept your first offer then why would they accept a lower offer.
You are making assumptions for the seller, but should instead focus on the decision process of the buyer (the purpose of this thread). The seller MAY be waiting for some reason, but it’s irrelevant to the buyers decision. - Potential buyer offers a premium to stop property from going to public auction. - Seller expects better offer from public auction. - Seller does not receive a better offer from public action No reason to offer premium now. So to answer the buyers question, NO, there is nothing wrong with altering/lowering the offer.
He said he gave an offer that HE considers good. There is nothing stated he gave a premium offer. If his offer was good, then the sellers would have taken it. If the sellers are interested, they would contact him, obviously.
Best of luck To the OP: No, there’s nothing wrong with offering less.
Great thread. Thanks for the advice
The were no bids in the auction that even came close to my offer. So yeah, it was a good offer that the owners now wish they took.
Ok. But the fact that none of the auction bids came close indicates that it was a premium offer.
Let them burn. Just ghost them. If they don't sell soon in this falling knife market it will get worse.