B4Xt3r wrote: ↑Tue Jun 08, 2021 6:37 pm
Just curious for your thoughts on the following real estate transaction. A home was listed and received one offer at list price. Seller is then disappointed at lack of a bidding war and then says they will sell to the buyer only if buyer raises their price. Market is extremely hot.
What would you do in such a situation?
If I was the buyer, I would walk. They don't want to sell the house OR their goal is to get some $$ amount for the house (for bragging rights) and aren't all that interested on the $$ they will actually get when the dust from the sale settles. (I have a relative like that - he dumped an additional 20K into his house AFTER getting it 'sale ready" because no one was putting in offers at his asking price. The potential buyers felt that the price was too high to pay for 5 year old appliances, and an outdated kitchen countertop and hardwood flooring that was 'older'. He put in all new appliances (kitchen + washer and dryer), a new countertop, tore out the old hardwood floor and put in new hardwood, and replaced a bunch of other stuff -so he'd get the price he felt his house was worth. I'm guessing he got the same amount of money after the sale as he would have gotten if he came down 20K on the price and sold it 4 months sooner)
I was under the impression that when buying/selling a house - even if you offered the 'sale' price and no other offers were put in the Seller wasn't obligated to sell the house to you. You don't automatically have a "contract" because you offered to pay the asking price of the house (and there were no other offers made).
Alternatively, if I really really really really wanted the house - I would try to find some other way to keep the sale price the same without actually giving the seller more money. If the house is in a High Property tax area - I might point out that selling it quickly (if you can indeed get to closing quickly) saves the seller from having to pay additional months of Property Taxes. It also saves them the expense of keeping the house in "sale" condition, along with utilities, lawn care, and perhaps the monthly cost of a rental "storage unit" where they stuck all their crap to make their house look nicer.
If I think the seller is "looking for bragging rights" about how much they got for the house (as opposed to getting a specific dollar amount from the sale when the dust clears) I might offer a higher bid price IF they foot the bill for some fix ups to their house before the sale - maybe repaint the interior in the colors you want - or replace all the carpeting or whatever else will cost the amount (or more!) that you bumped up your bid. - basically stuff you will have to do after moving in. Mortgage rates are really low. The seller gets their high price (without actually pocketing any additional $$ and you get to use low interest money for improvements you were going to make to the house after the sale.)