3,383,334
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.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Lyn Sims
Schaumburg, IL
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Barbara Todaro
Franklin, MA
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Ron and Alexandra Seigel
Carpinteria, CA
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Chris Ann Cleland
Gainesville, VA
1,844,301
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).
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Debe Maxwell, CRS
Charlotte, NC
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Eve Alexander
Tampa, FL
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Candice A. Donofrio
Fort Mohave, AZ
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Bob Crane
Stevens Point, WI
953,717
Your broker or mentor should be helping you with this!! Best wishes!
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Steve Higgins
Kelowna, BC
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Teri Pacitto
Westlake Village, CA
1,052,211
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!
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Pete Xavier
Pacific Palisades, CA
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
5,230,119
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.
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John Pusa
Glendale, CA
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Pete Xavier
Pacific Palisades, CA
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Candice A. Donofrio
Fort Mohave, AZ
5,583,278
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...
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Chris Ann Cleland
Gainesville, VA
352,976
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.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Pete Xavier
Pacific Palisades, CA
4,272,548
I think Chris Ann Cleland is the voice of reason here...
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Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
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Chris Ann Cleland
Gainesville, VA
1,502,998
Without knowing your state or market, here's what I recommend:
- 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.
- 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.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Kathleen Daniels, Prob...
San Jose, CA
711,852
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.
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Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
-
Chris Ann Cleland
Gainesville, VA
7,836,431
Don't lose a good offer. Your advice will relate to the current market conditions.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Nina Hollander, Broker
Charlotte, NC
544,014
Check the Blueman manual
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
87,920
All those Qs should be discussed in details with your broker.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
1,622,432
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.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
3,164,294
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.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
5,049,477
I would be talking with my broker about the options. Will depend on the market, and what the seller ultimately wants to do.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
5,104,931
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?
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Candice A. Donofrio
Fort Mohave, AZ
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Ron and Alexandra Seigel
Carpinteria, CA
3,071,489
3,416,038
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
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Debe Maxwell, CRS
Charlotte, NC
519,324
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.
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Candice A. Donofrio
Fort Mohave, AZ
4,319,419
Someone from your office should help you.
All the best - keep up the great work.
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Candice A. Donofrio
Fort Mohave, AZ
1,712,676
Since you pay a portion of your commission to your broker that is what they are there for.
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Candice A. Donofrio
Fort Mohave, AZ
1,543,833
Impossible to determine with so little information. Great problem to have.
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Candice A. Donofrio
Fort Mohave, AZ
2,684,109
Get your Broker in on this, immediately.
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Candice A. Donofrio
Fort Mohave, AZ
3,988,007
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.
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Candice A. Donofrio
Fort Mohave, AZ
1,311,397
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.
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Candice A. Donofrio
Fort Mohave, AZ
3,345,091
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.
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Debe Maxwell, CRS
Charlotte, NC
417,221
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.
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Candice A. Donofrio
Fort Mohave, AZ
4,160,899
5,772,575
Talk to your broker. Each state is different. A
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Candice A. Donofrio
Fort Mohave, AZ
613,494
I would try to work with the $30K escalation to verify how "solid" this buyer is... cash? financed? dying to buy it?
Eve
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Candice A. Donofrio
Fort Mohave, AZ
2,178,703
Don't deal with that alone! Get your broker, or other assigned experienced agent, to oversee this transaction.
1,045,440
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
5,868,565
Hope you have a broker that will give you some insight with this good problem!
86,514
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?
2,071,025
3,986,258
Above market values are fine but they need to have the cash to back it up
900,128
1,725,996
This decision needs to be left up to the sellers. Give them the options and let them decide.
4,800,082
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.)
921,504
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.
6,393,609
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.
4,434,127
5,216,900
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.
2,781,173