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3,383,334
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Hoping you have an experience agent in your office, or your broker, mentoring you through this.  The answer depends on your particular market.  And appraisal would be a concern on that 30K over list potentially.

Jul 09, 2018 01:57 PM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

30K escalation clause? BA is figuring that it won't appraise out for more than 1/2 of it. Seller should also figure that in. Not all of it will be realized I'm afraid unless you sprinkle holy water on the contract (strictly a Catholic practice I'm afraid).

Jul 09, 2018 05:54 PM
Rainmaker
953,717
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Your broker or mentor should be helping you with this!! Best wishes!

Jul 09, 2018 04:11 PM
Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Wait. If the property should have no problem appraising at the highest of the escalation clause prices, why was the property deliberately underpriced?

Off to read the other answers, involving variations of 'where the heck is your broker' on an endless loop.

This is interesting to us, but to get your problem solved you need your broker.

PS. If I was your broker I'd say find out what your seller wants to do. He's the boss!

Jul 10, 2018 03:43 AM
Ambassador
5,230,119
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Sorry but, we cannot coach you on an active transaction. Your broker should absolutely be doing this WITH you.

Also, of note, the appraisal should be a concern with an Offer that much over highest Offer which is, who knows how much, over list price.

Jul 09, 2018 08:25 PM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Chris Ann Cleland is right.... make sure you have an experienced agent by your side on this one.... where's your manager?? the scenario you just described should be read by your manager...

Jul 09, 2018 05:27 PM
Rainer
352,976
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

I agree with Pete Xavier on this. Your Broker or designated agent/Broker who is guiding you definitely needs to advise you on this multiple offer situation.  Way too many factors other than what you have laid out here.  

Congrats on your multiple offers and Best of Luck...let us all know how this turns out.  

Jul 09, 2018 05:03 PM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I think Chris Ann Cleland is the voice of reason here...

Jul 09, 2018 04:25 PM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Without knowing your state or market, here's what I recommend:

  1. Calling each lender to see if they've reviewed their documents (has it been through underwriting) and see how solid they are.  There's a difference between barely making it and having room to spare.
  2. I'd need to know where the listing is price wise with the rest of the market.  Like has been said, could it appraise for $30k more?  If that's questionable, counter back a removal of the appraisal contingency so that "if property does not appraise, buyer is to bring in sufficient funds to cover any difference.  Seller will not lower the purchase price."

Typically, if I do "best and final" I'll send it out to the second and third best offers, that way if they decide "Ewww!  A bidding war" and run away, I still have the best offer and any others.

Jul 09, 2018 02:46 PM
Rainmaker
711,852
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Will the house appraise at $30,000 over the next best offer? Is the offer cash? Is it subject to a home selling? Is the buyer preapproved or just starting out? All "best offers" are not necessarily the highest offered price.

Jul 09, 2018 01:56 PM
Rainmaker
7,836,431
Roy Kelley
Retired - Gaithersburg, MD

Don't lose a good offer. Your advice will relate to the current market conditions. 

Jul 09, 2018 01:42 PM
Rainmaker
544,014
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Check the Blueman manual

Jul 10, 2018 01:03 AM
Rainer
87,920
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

All those Qs should be discussed in details with your  broker.

Jul 09, 2018 10:39 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

1. it is not about price, but all terms in that purchase contract. 

3. Your broker would be a better choice to advise, or at least, a mentor. 

Jul 09, 2018 10:31 PM
Ambassador
3,164,294
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

my advise is call the loan officers and check out their approval letters.  Are they automated underwritting approvals or real underwritting approvals? Typically I advise picking one with a great loan officer (especially if it's a loan officer with a track record of closings for me) and negotiating with them.  "highest and best" can lead to not appraising and not closing.

Jul 09, 2018 09:28 PM
Ambassador
5,049,477
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I would be talking with my broker about the options. Will depend on the market, and what the seller ultimately wants to do.

Jul 09, 2018 02:42 PM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I don't understand your question. Is the amount of the escalation $30K above the next highest bid. Or is it simply $30K higher? Will property appraise at the price and will buyer purchase the property regardless of appraisal?

Jul 09, 2018 01:43 PM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Chris Ann Cleland nailed this one!

Jul 10, 2018 05:53 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I actually call the pre approvals that are not from local and trusted banks/mortgage companies. Then i have my seller counter to have teh buyers make their highest and best offer. Then i make a chart of each one and pick the best. Sometimes we can counter 1 offer than almost meets what we want

Jul 10, 2018 05:18 AM
Rainmaker
519,324
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

What are the other terms?  Have you verified the PreApproval letters are reasonably valid? If the highest one didn't appraise, do they have enough in down payment to make up the difference? 

I do a spread sheet breaking down all the variables.  I research the lender, buyer's agent and find out if there are issues we should consider beyond the terms of the contract.  

Finally, it's the seller's decision. 

I agree with the others, you need someone, preferably your managing broker or mentor to walk you through this. There is more to know than all our answers here combined. 

Jul 09, 2018 11:39 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Someone from your office should help you.

All the best - keep up the great work.

Jul 09, 2018 11:20 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Since you pay a portion of your commission to your broker that is what they are there for.

Jul 09, 2018 08:56 PM
Rainmaker
1,543,833
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Impossible to determine with so little information. Great problem to have.

Jul 09, 2018 08:37 PM
Ambassador
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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Get your Broker in on this, immediately.  

Jul 09, 2018 06:27 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

If you are certain that it will appraise $30,000 higher what is there to think about? If you are new you should be having a veteran in your office or broker advising you. One wrong move and the seller can lose all of them.

Jul 09, 2018 03:59 PM
Rainmaker
1,311,397
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

All things being equal, why would you not want to obtain the highest dollar amount offer? It seems that an buyer who is telegraphing willingness  to pay $30K over everyone else should get a counter offer that basically calls for them to put their money where there mouth is.

I am sure it is not that simple. This is why you should have a mentor, broker or senior agent in your office to advise you.

Jul 09, 2018 03:47 PM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Every market is different.  Not all markets would tolerate what I would do.  I recommend you sit down with your broker and hammer this out in a way that will serve your clients highest and best good. 

Jul 09, 2018 03:45 PM
Rainer
417,221
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

No pre-approval is the same. Get advice on who the lenders are and how much down payment they state. Any give you 50% down? Large down payment would indicate the ability to pay cash for a short appraisal. Don't assume subject will appraise for highest dollar, counter with a clause to waive appraisal and other loan contingencies with 5- or 6 days. Don't take off market for 30 days to try again as the other buyers will find other properties and move on.

Jul 09, 2018 03:42 PM
Rainmaker
4,160,899
John Pusa
Glendale, CA

Many great answers.

Jul 09, 2018 03:07 PM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Talk to your broker.  Each state is different.  A

Jul 09, 2018 02:27 PM
Rainmaker
613,494
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

I would try to work with the $30K escalation to verify how "solid" this buyer is... cash? financed? dying to buy it?

Eve

Jul 09, 2018 01:50 PM
Ambassador
2,178,703
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Don't deal with that alone!  Get your broker, or other assigned experienced agent, to oversee this transaction.

Jul 24, 2018 09:03 AM
Rainmaker
1,045,440
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

Make sure to consider the terms of the contracts as well and which terms are best for your client's situation.

Layout the pros, cons and details on a spreadsheet for easier comparrison by your clients. Then let them ask you any questions they have and offer advice based on what they ask you.

They have a variety of options make sure they understand them and then its up to them to decide how they want to proceed, not you so

Jul 15, 2018 03:51 PM
Rainmaker
5,868,565
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Hope you have a broker that will give you some insight with this good problem!  

Jul 13, 2018 02:45 PM
Rainer
86,514
Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

The way I look at this question is we have an Anonymous individual asking a very tricky question. I have NO idea who this person is and what they are up to. How do we go about getting rid of Anonymous  participants? 

Jul 12, 2018 08:52 PM
Rainmaker
2,071,025
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Poor agent, no mama and papa and no broker. 

Jul 12, 2018 07:01 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Above market values are fine but they need to have the cash to back it up

Jul 12, 2018 04:22 PM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Speak to your broker!

Jul 10, 2018 04:21 PM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

This decision needs to be left up to the sellers. Give them the options and let them decide.

Jul 10, 2018 08:42 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

If they all require financing, the property will need to appraise.  I would go with the offer with the biggest down payment where you can still have the deal go through even with a low appraised value.  (If I am assuming correctly about the appraised value.)

Jul 10, 2018 06:24 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

New agent...not buying it.

First listing...not a chance.

Multiple offers all with escalation clauses...you're kidding of course.

The course to take is clear however, it is unknown if you have the skill, knowledge, experience or are sufficiently responsible to properly use such direction. Therefore you should be directed, since you are a new agent with a 1st listing, to consult your broker (this is why you overpay them) or mentor.

Jul 10, 2018 05:20 AM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

It is not really 30k above, it is only as far above as the escalation allows.

Remember the minute you counter the deal as it stands is dead and all have the right to walk away, and many will if they think you are doing something shady.

Jul 09, 2018 06:26 PM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Jul 09, 2018 05:01 PM
Rainmaker
5,216,900
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

You need someone with some local market experience to guide you. There are many questions here includung strength of the pre approval letters issued by what reputabe lenders and ability of the property to appraise. Proceed cautiously.

Jul 09, 2018 04:54 PM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

At some point pick an offer and close escrow asap.....

Jul 09, 2018 03:11 PM