Need Some Help With An Offer Situation
Made an offer on a property. Asking price is $104.9. My offer was $97.5. According to the seller's agent, there are two other offers on the table, including one for the asking price. But the other two offers came through other agents, whereas we went directly to the seller's agent. The property does work at the asking price, and comps are about right, but I'm not sure if this agent is telling the truth or not. He may be lying, just trying to get us to up our offer. He's sort of young and slick and a bit of a weasel. Maybe I'm just being paranoid. What do you think?
Impossible to know. There is benefit in using the sellers agent, because he gets both sides of the commission he is mroe likely to present your offer in a better light. But there is also a detriment in using the sellers agent, because is he working for the seller. You must be careful telling him how much you love the house and how you could go higher if you had to. I am not sure if he is obligated to "tell the truth".
You are in a touch, but very common situation. You just have to make the call if you can afford the extra payments on 7.4k (how much extra payment is that for you?) and how much do you want the house.
Sorry not to be much help.
Brenda
If you have done your homework, then you should know what your top end price you are wiling to pay for this property. If the numbers work into your business plan for this house, then it should be obvious whether to pay the extra cash or not. Remember...not every deal flies. 7K is going to come right out of your pocket. When the numbers don't add up, you walk. There will be others.
Dave
Hmm, maybe I'm just being greedy and looking at this the wrong way. The increased mortgage payments are roughly an additional $50 per month. But even at that price, the property will generate enough cashflow to be acceptable in my portfolio. I just don't like the idea of increasing my offer when I'm so unsure of wheather or not there really is any competition for this place. I think it's just this agent that's making me uncomfortable. This and fact that I've never paid asking price before. Sudenly I've got butterflies in my stomach.
[ Edited by alexlev on Date 06/02/2004 ][ Edited by alexlev on Date 06/02/2004 ]
You might have to sell the agent on the fact that even if it sells at full price with a buyers agent your offer has about 3K more in commission for him.
Or tell him you will come back with a full price offer with a buyers agent his choice.
Sounds like the agent is using the "other options" Gambit as written in "The Weekend Millionaire's Secrets to Investing in Real Estate(a great book).
However, as you said, The property WILL work at the asking price. You only need to determine if the agent is a good negotiator OR if you are willing to loose the deal in order to attempt saving some money.