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What I'm Hearing ...
pawz
Member, Moderator, Swaye's Wigwam Posts: 22,515 
Comments
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From you perspective, so when you put in a bid which doesn't "win" is it now customary for the selling agent to invite higher bids with [or without?] an idea of the price to beat, or is the custom to just have one round of offers and the best offer wins...
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The weed be letting them know?pawz said:
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Getting ready to sell a house and am wondering which is the best strategy.
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A lot of things can happen however, usually in a multiple offer situation, there is one-round of offers at a given Offer Review Date. Brokers operating under the Northwest Multiple Listing Service (NWMLS, which covers most of WA St) will submit with an Escalator Addendum, NWMLS Form 35E, with the Buyer's offer. Basically what that form says - if you are the buyer - is you are willing to pay x-amount over any competing offer up to y-price.DawgsCanDance said:From you perspective, so when you put in a bid which doesn't "win" is it now customary for the selling agent to invite higher bids with [or without?] an idea of the price to beat, or is the custom to just have one round of offers and the best offer wins...
For example: Say the List Price is $1M for a property. You might offer $1,000,000; up to $1,200,000; in $10,000 increments. So if someone else made an offer of $1,132,000, you would then be compelled to purchase the property for $1,142,000 - $10k more than that competing offer.
Let's say a competing offer was for $1,193,500. You would only have to pay $1,200,000 because you said that was your max, you DON'T have to go to 1,203,500.
If a competing off was $1,215,000; well you're OUT because you max was $1,200,000. So when articulating that top end of your range, you really need to know your walk-away price where you will have no regrets if you don't get the property.
Another scenario that can happen lets say its the same home but 10 offers came in. 3 of those offers were at $1.193M, $1.197M, and $1.196M. The seller might go back to the top 3 offers and ask them to resubmit with their "highest and best".
One important caveat to the Escalation Addendum is that the Competing Offer that drove up Buyer's price MUST be produced in it's entirety. The Listing Broker can't just call Buyer's Broker and say, "you won't believe it, we got a competing offer to infinity. You now owe infinity + $10k"
The business end of the NWMLS 35E states:
1. PURCHASE PRICE. If Seller receives a Competing Offer for the Property prior to accepting this offer, with a Net Price equal to or greater than the Net Price of this offer, then the Net Price of this offer shall be increased to $______ more than the Net Price of the Competing Offer. In no event, however, shall the new Purchase Price of this offer exceed $________.
The term "Net Price" means the state Purchase Price (or the maximum price if the Competing Offer contains a price escalation clause) including any price adjustments such as credits to Buyer for closing costs or credits to Seller.
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Honestly, it depends.Blu82 said:Getting ready to sell a house and am wondering which is the best strategy.
First, where are you located roughly?
If you have two-story or day-light rambler that is in like-new condition on the greater Eastside with some view, you should come on the market and wait for the Offer Review Date.
If you have a run-down split-level that fronts HWY 2 in Goldbar, I wouldn't get greedy. With that said and such little inventory, now is the time to sell a "trouble" property.
Generally speaking in this market place, it is best to bring any home to the broadest exposure of the market place to ensure you get the best price and terms.
The corollary is to understand that we live in a very tech-centric market. Everyone shopping for homes is looking online long before they get in the car to come look. Therefor its imperative the market perceives a "value". That is when you will have the best results.
As always, happy to advise off-line on any specifics you would rather not have broadcast in a public forum.
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Seems like Rock-Paper-Scissors is more efficient.
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When we sold last May our realtor held offers until Sunday and then we had 4 offers. One walked away when they found out about the other offers and one was outbid, early on. The other two has escalators that capped at the same amount. The realtor went back to both and explained the deal. Both adjusted their escalators and removed some contingencies. In the end the highest bidder was only $5k under his adjusted cap. Zillow now prices the old house at $90k over what we sold it for; it’s definitely a seller’s market.
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Thanks for the information, it’s very helpful... yow that is a seller based extraction system to get people to bid the maximum
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Very good intel. @paws . I knew none of that. Of particular importance is the requirement that the competing offer be "produced". That's a good industry convention. So, if, say, someone was caught manufacturing a competing offer with bullshit, you could arguably rescind the contract, or sue for breach and damages would be easy to prove: you paid more than you would have w/o the phantom competing offer.pawz said:
A lot of things can happen however, usually in a multiple offer situation, there is one-round of offers at a given Offer Review Date. Brokers operating under the Northwest Multiple Listing Service (NWMLS, which covers most of WA St) will submit with an Escalator Addendum, NWMLS Form 35E, with the Buyer's offer. Basically what that form says - if you are the buyer - is you are willing to pay x-amount over any competing offer up to y-price.DawgsCanDance said:From you perspective, so when you put in a bid which doesn't "win" is it now customary for the selling agent to invite higher bids with [or without?] an idea of the price to beat, or is the custom to just have one round of offers and the best offer wins...
For example: Say the List Price is $1M for a property. You might offer $1,000,000; up to $1,200,000; in $10,000 increments. So if someone else made an offer of $1,132,000, you would then be compelled to purchase the property for $1,142,000 - $10k more than that competing offer.
Let's say a competing offer was for $1,193,500. You would only have to pay $1,200,000 because you said that was your max, you DON'T have to go to 1,203,500.
If a competing off was $1,215,000; well you're OUT because you max was $1,200,000. So when articulating that top end of your range, you really need to know your walk-away price where you will have no regrets if you don't get the property.
Another scenario that can happen lets say its the same home but 10 offers came in. 3 of those offers were at $1.193M, $1.197M, and $1.196M. The seller might go back to the top 3 offers and ask them to resubmit with their "highest and best".
One important caveat to the Escalation Addendum is that the Competing Offer that drove up Buyer's price MUST be produced in it's entirety. The Listing Broker can't just call Buyer's Broker and say, "you won't believe it, we got a competing offer to infinity. You now owe infinity + $10k"
The business end of the NWMLS 35E states:
1. PURCHASE PRICE. If Seller receives a Competing Offer for the Property prior to accepting this offer, with a Net Price equal to or greater than the Net Price of this offer, then the Net Price of this offer shall be increased to $______ more than the Net Price of the Competing Offer. In no event, however, shall the new Purchase Price of this offer exceed $________.
The term "Net Price" means the state Purchase Price (or the maximum price if the Competing Offer contains a price escalation clause) including any price adjustments such as credits to Buyer for closing costs or credits to Seller.
Thanks for this. Very good info. -
Hi there? How may I help the swarthy Cuban?creepycoug said:
Very good intel. @paws . I knew none of that. Of particular importance is the requirement that the competing offer be "produced". That's a good industry convention. So, if, say, someone was caught manufacturing a competing offer with bullshit, you could arguably rescind the contract, or sue for breach and damages would be easy to prove: you paid more than you would have w/o the phantom competing offer.pawz said:
A lot of things can happen however, usually in a multiple offer situation, there is one-round of offers at a given Offer Review Date. Brokers operating under the Northwest Multiple Listing Service (NWMLS, which covers most of WA St) will submit with an Escalator Addendum, NWMLS Form 35E, with the Buyer's offer. Basically what that form says - if you are the buyer - is you are willing to pay x-amount over any competing offer up to y-price.DawgsCanDance said:From you perspective, so when you put in a bid which doesn't "win" is it now customary for the selling agent to invite higher bids with [or without?] an idea of the price to beat, or is the custom to just have one round of offers and the best offer wins...
For example: Say the List Price is $1M for a property. You might offer $1,000,000; up to $1,200,000; in $10,000 increments. So if someone else made an offer of $1,132,000, you would then be compelled to purchase the property for $1,142,000 - $10k more than that competing offer.
Let's say a competing offer was for $1,193,500. You would only have to pay $1,200,000 because you said that was your max, you DON'T have to go to 1,203,500.
If a competing off was $1,215,000; well you're OUT because you max was $1,200,000. So when articulating that top end of your range, you really need to know your walk-away price where you will have no regrets if you don't get the property.
Another scenario that can happen lets say its the same home but 10 offers came in. 3 of those offers were at $1.193M, $1.197M, and $1.196M. The seller might go back to the top 3 offers and ask them to resubmit with their "highest and best".
One important caveat to the Escalation Addendum is that the Competing Offer that drove up Buyer's price MUST be produced in it's entirety. The Listing Broker can't just call Buyer's Broker and say, "you won't believe it, we got a competing offer to infinity. You now owe infinity + $10k"
The business end of the NWMLS 35E states:
1. PURCHASE PRICE. If Seller receives a Competing Offer for the Property prior to accepting this offer, with a Net Price equal to or greater than the Net Price of this offer, then the Net Price of this offer shall be increased to $______ more than the Net Price of the Competing Offer. In no event, however, shall the new Purchase Price of this offer exceed $________.
The term "Net Price" means the state Purchase Price (or the maximum price if the Competing Offer contains a price escalation clause) including any price adjustments such as credits to Buyer for closing costs or credits to Seller.
Thanks for this. Very good info.
