Home for sale - fsbo mess

[amdskip]

So this is what I am going through right now. I find a place and view it and I am 2nd in line after party A. Party A was shopping for someone else.

I like the place so I offer the full asking price. Party A finds out of the offer, they need a couple days to think about it. Meanwhile I have the financial part of this setup with a bank and the loan will not be an issue at all.

Before going to the bank again I call the owner and I wanted to know if Party A had gotten back to him yet and he said no. He then says he is letting another Party, lets call them Party C look at it in a few days.

A few days pass and he calls me to tell me that "a neighbor" has offered him 5k more than what my offer was and he acted like Party A & C were out of the picture. So I asked him to get their offer in writing because I am skeptical about their offer.

How do I proceed from here? It really is not worth that much more but this seems somewhat shady to me now.

 

[imported_Mike]

Sounds like he is trying to get some more money out of you.

 

[hx009]

It's their house and they'll hold out and sell it for what they want. I'm not saying it's not shady, but what makes you think you're entitled to it just because you offered asking price?

 

[ChaoZ]

Stay firm with your offer. The sellers can't accept the other offer if it doesn't exist.

 

[amdskip]

Originally posted by: ChaoZ
Stay firm with your offer. The sellers can't accept the other offer if it doesn't exist.

This is what I am thinking. I would go as far as having a meeting with this mystery other buyer.

 

[Slew Foot]

Oldest trick in the book. 99% of the time, there arent any other offers. If you cant get this one now, wait a year and itll be cheaper.

 

[AnonymouseUser]

Tell them to call you if the other deal falls through. Also tell them that your offer will be $5000 LOWER a week from now.

 

[LostHiWay]

Typically the reasons a person goes FSBO is because:

a) they're cheap and don't want to pay realtor fees
b) they think their house is worth more than it really is and a realtor won't list it.

Your guy sounds like option A. I say call him and let him know that you're sorry but you can't offer any more. Tell him to call you if the other offer falls through. I can promise you in a day or two he'll be calling you. When he does offer him $2500 less than what you did to begin with. He might not like it be he'll eventually take it.

 

[Fern]

First of all, you may wanna check the rules in your state.

In some states, if an offer is made, the seller is not allowed to entertain/receive/consider any subsequent offers until until he has either accepted or rejected the first offer.

Other states, seller can do whatever the h3ll (s)he wants.

Fern

 

[novasatori]

Originally posted by: LostHiWay
Typically the reasons a person goes FSBO is because:

a) they're cheap and don't want to pay realtor fees
b) they think their house is worth more than it really is and a realtor won't list it.

Your guy sounds like option A. I say call him and let him know that you're sorry but you can't offer any more. Tell him to call you if the other offer falls through. I can promise you in a day or two he'll be calling you. When he does offer him $2500 less than what you did to begin with. He might not like it be he'll eventually take it.

sounds like a good idea

happened to someone I know, he offered 170k for a house, they said that it was good but had to wait for other buyers, then came back and said someone else offered more.
Even though the house wasn't really worth it. He said anything more was too much for him.
They came crawling to him 2 months later begging him to buy it for 120k, 50k off... He already bought a much better place down the shore from it for 150k.

 

[AlienCraft]

Originally posted by: amdskip

Originally posted by: ChaoZ
Stay firm with your offer. The sellers can't accept the other offer if it doesn't exist.

This is what I am thinking. I would go as far as having a meeting with this mystery other buyer.

Why bother with that?

Simply tell them you hope the other buyer enjoys the house.If there's no other buyer, you'll hear that they backed out pretty soon. Then respond with an offer a few $K lower

You do have another property you're interested in don't you? If not, you're at risk of having emotional attachment take over the negotiating, which isn't good for you.

 

[amdskip]

I went through another property today so I do have it and another property.

 

[deerslayer]

Originally posted by: AnonymouseUser
Tell them to call you if the other deal falls through. Also tell them that your offer will be $5000 LOWER a week from now.

I like the way you think.

 

[FoBoT]

why get in a bidding war when it is a buyers market

 

[bctbct]

Originally posted by: AnonymouseUser
Tell them to call you if the other deal falls through. Also tell them that your offer will be $5000 LOWER a week from now.

:thumbsup:

 

[xgsound]

If your offer was in writing and he has a better offer you don't want to meet , rescind your offer in writing also.

Jim

 

[OrByte]

Fern is right, check your state laws. Even though this is FSBO..you might get a clearer idea.

but (in practice) FSBO deals are a bit nebulous when it comes to buyer rights vs seller rights. The seller will most often times get away with whatever they want.

 

[Tiamat]

Originally posted by: AnonymouseUser
Tell them to call you if the other deal falls through. Also tell them that your offer will be $5000 LOWER a week from now.

ooh, thats rad. I like your line of thinking there :thumbsup:

 

[dud]

OP, just curious ... where are you located? Most markets today are inflated with prices coming down somewhat. Unless you are in one of those few markets not affected by the recent downturn I would be HIGHLY skeptical of the seller's claim.

FWIW, IF you really like the property and are really willing to pay the full asking price I suggest you call the seller and let them know that your offer is time-limited and only good for 3 days. If this "neighbor" actually exists you will know soon enough.

Good luck!

 

[BarneyFife]

Originally posted by: AnonymouseUser
Tell them to call you if the other deal falls through. Also tell them that your offer will be $5000 LOWER a week from now.

Yup. This isn't 2002. Prices are falling like crazy. Don't even mess around with trying to find the other interested party.

 

[HomeBrewerDude]

wait a sec...

when you put an offer in, didn't you put a time limit for how long the offer is good for? Basically, they either accept or not accept, no i'll give you a few days to drum up a better offer.

And if your offering the full price, then I may HAVE to accept under fair housing rules.

 

[amdskip]

I live in west central Illinois and I am unsure of what the rules are. It was a verbal offer and the seller acted like that was all he wanted, nothing formal at all.

 

[HomeBrewerDude]

Originally posted by: amdskip
I live in west central Illinois and I am unsure of what the rules are. It was a verbal offer and the seller acted like that was all he wanted, nothing formal at all.

i dunno.... i don't think thats wise. put in it writing with the usual inspection and financing contingencies etc... Protect yourself in writing every step of the way.

 

[MasonLuke]

Originally posted by: AnonymouseUser
Tell them to call you if the other deal falls through. Also tell them that your offer will be $5000 LOWER a week from now.

:thumbsup:

 

[Vic]

Originally posted by: Slew Foot
Oldest trick in the book. 99% of the time, there arent any other offers. If you cant get this one now, wait a year and itll be cheaper.

You have a crystal ball?

You continue to demonstrate that you don't know what you're talking about when it comes to real estate. The OP (if his profile is correct) does not live in an appreciated area. The median home value is only about $80,000.

I agree that the OP should not deal with this seller. FSBO should have been his first hint that something was up. Dirty tricks should not be rewarded. I would just tell the seller that he already has my offer, take it or leave it but I want an answer in a week.