Waiting for someone else to offer

[jackmichigan]

Originally Posted by cvap

Waiting for someone else to set the value then beating it is sneaky and unethical

I don't see it as being either sneaky or unethical. Far from it--they were just tentative about what to offer. That's really not unusual.

Originally Posted by cvap

Then which party is more motivated the one who put a deposit and signed a offer to purchace or the one who is ending our relationship as neighbors freaking out because I am going to take the legit offer? I say the one who showed the money first. Am I correct?

I disagree, rather strongly. The neighbor is now highly motivated because to him there are no other options. Location is everything. He can't buy something else to suit his needs--if he doesn't buy your property now it will be lost forever. The fact that he came to that realization late...so what? If you're concerned that he won't close in a timely fashion, require a significant non-refundable down payment.

If in doubt, follow Rakin's suggestion: have your agent reach out to both so that they can put in their best offers by a certain date. Over and done with; sleep well.

[hooligan]

Originally Posted by MikeJaquish

Welll....
I never say "highest and best." Some buyers will take umbrage at making a higher offer and not getting the property with highest offer, because we focus too much on price.

I DO say, "...multiple offers. I want everyone to have a fair chance to put your best foot forward, and we will make a decision Saturday evening."

That's probably a bit more circumspect, yes.

[dontaskwhy]

Originally Posted by adjusterjack

Or, tell the neighbor you'll accept a back up offer with a cashier's check for earnest money and you'll hold it in case the current deal falls through.

That would never happen in my market for any buyer with common sense. Before I was a Realtor, I attempted to buy a home (cash) and the seller wanted me to write an earnest money check and give it to him. I refused and offered to do so with either a local title agency or a Real Estate attorney. He refused and I bought a slightly larger home across the street that I am very happy with. In my experience, the seller only gets paid after a successful closing and is not getting a deposit paid to them anytime sooner.

[cvap]

Originally Posted by jackmichigan

I don't see it as being either sneaky or unethical. Far from it--they were just tentative about what to offer. That's really not unusual.



I disagree, rather strongly. The neighbor is now highly motivated because to him there are no other options. Location is everything. He can't buy something else to suit his needs--if he doesn't buy your property now it will be lost forever. The fact that he came to that realization late...so what? If you're concerned that he won't close in a timely fashion, require a significant non-refundable down payment.

If in doubt, follow Rakin's suggestion: have your agent reach out to both so that they can put in their best offers by a certain date. Over and done with; sleep well.

I disagree with both paragraphs. The neighbor had 4 years to make a counter offer so I listed it. He still didn't offer anything but a used VW Golf. The realtor now is the one who suggested the prices. Higher than I was asking. He called her complained about the price and never made an offer. I say either s..t or get off the pot! Well he's off the pot now and is going to have 5 modulars with kids and dogs across from his 2 million dollar house.
Answering other posts : this is a land only listing
Asking was within comps
After listing I got a deposited signed offer then came on here for advice

It's over now. Well, pending perks. And this is a hungry town of 100 people with no county oversight and the board of health will pass the percs. Got 155 with an asking of 160 when 4 years ago up to when I listed it I only wanted 100.
So the neighbor got what I believe he deserved and I learned a realtor can get you more than you think your property is worth.

[MikeJaquish]

Originally Posted by cvap

I disagree with both paragraphs. The neighbor had 4 years to make a counter offer so I listed it. He still didn't offer anything but a used VW Golf. The realtor now is the one who suggested the prices. Higher than I was asking. He called her complained about the price and never made an offer. I say either s..t or get off the pot! Well he's off the pot now and is going to have 5 modulars with kids and dogs across from his 2 million dollar house.
Answering other posts : this is a land only listing
Asking was within comps
After listing I got a deposited signed offer then came on here for advice

It's over now. Well, pending perks. And this is a hungry town of 100 people with no county oversight and the board of health will pass the percs. Got 155 with an asking of 160 when 4 years ago up to when I listed it I only wanted 100.
So the neighbor got what I believe he deserved and I learned a realtor can get you more than you think your property is worth.

I agreed with Jack, but your added details are much more supportive of your course of action.
Advice often changes with more details, "The Rest Of The Story," so to speak.

[MikePRU]

Originally Posted by adjusterjack

Or, tell the neighbor you'll accept a back up offer with a cashier's check for earnest money and you'll hold it in case the current deal falls through. I'll bet he back pedals real quick when he's got to put his money where his mouth is.

Originally Posted by dontaskwhy

That would never happen in my market for any buyer with common sense. Before I was a Realtor, I attempted to buy a home (cash) and the seller wanted me to write an earnest money check and give it to him. I refused and offered to do so with either a local title agency or a Real Estate attorney. He refused and I bought a slightly larger home across the street that I am very happy with. In my experience, the seller only gets paid after a successful closing and is not getting a deposit paid to them anytime sooner.

I would guess Jack was saying that the cashier's check would be held by the real estate agent or the escrow company. Personally, I would balk at the thought of giving over a deposit for an offer that may or may not be accepted myself even if it is being held by an escrow agent. No sense in letting someone hold onto your money for no reason.

Originally Posted by jackmichigan

I don't see it as being either sneaky or unethical. Far from it--they were just tentative about what to offer. That's really not unusual.

OP is saying there were comps to justify their list price of $160K. He was only asking the neighbor to pay $100K and he wouldn't even pay that much. They were either trying to get a deal or it just didn't have the same value to them that it does to the rest of the market. Either way, OP made a smart decision and made out.

Originally Posted by jackmichigan

I disagree, rather strongly. The neighbor is now highly motivated because to him there are no other options. Location is everything. He can't buy something else to suit his needs--if he doesn't buy your property now it will be lost forever. The fact that he came to that realization late...so what? If you're concerned that he won't close in a timely fashion, require a significant non-refundable down payment.

Neighbor's motivation levels may have gone up. I don't personally like to deal with folks who need that kind of pressure to become motivated. When the pressure disappears the motivation level typically drops down to where it was before.

Sure you could ask for a big non-refundable deposit that might help make sure the deal gets done. I have no idea what a typical deposit is in the OP's area though. I also have no idea what the laws are either. I know here in MA it's REALLY difficult to walk away with someone's deposit unless they let you have it even if the contract says you get it if the other party defaults. Why spend years in court when you can just get the deal done now?

Originally Posted by cvap

I disagree with both paragraphs. The neighbor had 4 years to make a counter offer so I listed it. He still didn't offer anything but a used VW Golf. The realtor now is the one who suggested the prices. Higher than I was asking. He called her complained about the price and never made an offer. I say either s..t or get off the pot! Well he's off the pot now and is going to have 5 modulars with kids and dogs across from his 2 million dollar house.
Answering other posts : this is a land only listing
Asking was within comps
After listing I got a deposited signed offer then came on here for advice

It's over now. Well, pending perks. And this is a hungry town of 100 people with no county oversight and the board of health will pass the percs. Got 155 with an asking of 160 when 4 years ago up to when I listed it I only wanted 100.
So the neighbor got what I believe he deserved and I learned a realtor can get you more than you think your property is worth.

Lot of good detail in this post that I think reinforces the decision you ended up making.

IMO the only way to achieve a maximum sales price is to effectively market the property to EVERYONE. If you're only telling a few people it's for sale then that's going to affect the price.

Originally Posted by MikeJaquish

I agreed with Jack, but your added details are much more supportive of your course of action.
Advice often changes with more details, "The Rest Of The Story," so to speak.

There are three sides to every story . . . your side . . . my side . . . and the truth, no?

[cvap]

Chatting has been great but one more. I did agree to pay for the perc test but didn't know I have to set it up too, and for a 7/7 closing date. Don't they have to know a location to do the test? Like where on the 20 acres she wants the house? The realtor just said it only has to appraise and pass a perc. Shouldn't the buyer be there?. I guess I should ask this question to my realtor.