There’s One In Every Crowd

 

It happens all the time. There’s multiple offers on a given property and one knucklehead thinks they can successfully win it with their offer written under the asking price. InTracy last month, a house got 15 offers and one of them came in $25,000 under asking. Huh? My question is, what’s wrong with that agent? Who writes an offer like that?

OK, maybe I’m assuming too much. Here’s an absolute. A guarantee. If there’s 15 offers on any given property it’s going to sell over the asking price. No doubt about it. I promise. Also…I think the odds are WAY in favor of a house going over the asking price if there’s as few as 3 offers. If you’re competing in this 2012 market you’re going to need to make an offer over asking. 

Still, with every multiple offer scenario out there comes a story about somebody coming in under asking. Hilarious! Of course that’s the biggest piece, but there’s other silly things buyers do in this environment too. Asking the seller to pay your closing costs is almost as bad an idea as coming in under asking.

It’s really fairly easy to know if there’s going to be multiple offers on a place too. Simply ask, or have your agent ask, the listing agent 24 hours before the deadline how the activity has been. How many offers do you have? If the answer is over 25 you better get ready to write your strongest offer. Call again about an hour before the deadline and see if the agent can give you a solid number. One feeding frenzy I went through 2 weeks ago had 21 offers but when I called the agent about an hour before the deadline he told me he had 4 in hand and was expecting 2 or 3 more at best. Turned out he was wrong. Still, 6 offers invites you to swing for the fence in my mind as well.

If you’re writing an offer under asking in this environment your simply driving the overall price up, in my opinion. Most folks base their number on how many other offers are in play. Writing a silly offer like that just helps the seller get more money.