Made a cash offer yesterday on a unique custom-built home on 5 acres located 30 miles outside of Redding. It would immediately serve as a home for my retired parents, but also as a weekend getaway place and, ultimately, a bug-out/homestead.
We were told by my agent (who was told by the listing agent) that there were a couple of offers already on the table... one was some dude trying to get a VA loan and had been unsuccessful for 2 weeks getting it done. That's all we knew other than some other offers existed as well. Listing price is at $185 - we were planning to offer $180 cash.
As we were filling out the offer paperwork, our agent calls and tells us that the listing agent just told him one of the other offers was a "very strong cash offer"... intimated that it was $185 with 3 week closing terms. This annoyed me. But we felt the place was worth it, so we officially offered $185 cash with 2 week closing terms.
Note: After we saw the property on Saturday, we were told by the agent that the seller would be "reviewing all offers and making a decision by 5 pm on Sunday".... so we were certainly under the gun to make an offer.
This morning, my agent calls to tell me that the seller would like to give the VA loan prospect (who has apparently been pleading with the seller DIRECTLY to give him more time) until this Friday to get all his ducks in a row with the loan. The listing agent (supposedly) thinks it won't go through.... but that leaves us more ticked off at the situation.
I'm a first-time home buyer... have never dealt with RE agents - but, as a skeptic by nature, I don't like or trust this whole friggin system. I told my agent that I want to know for sure that the seller is cognizant of my cash offer (since I've read story after story about shady agents witholding offers from their clients in order to maximize commissions). I then basically told him that we want our offer accepted or rejected... and if rejected, we can always submit a new offer this Friday if the VA loan guy falls through (apparently the "story" is that the seller is a veteran himself and would like to help a fellow vet out since the prospect has been extremely enthusiastic, even directly with the seller).
My wife and I certainly like the home/property but we won't be terribly crushed if we don't get it... thus why I asked for acceptance or rejection. In retrospect, perhaps my reaction was emotional and hasty -- but in general, I was hoping for some commentary or advice here.
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FollowBefriend1 threads2 comments
^ I also should have mentioned.... after we saw the property on Saturday, we were told by the agent that the seller would be "reviewing all offers and making a decision by 5 pm on Sunday".... so we were certainly under the gun to make an offer.
I smell shenanigans.
Do you know how much it is worth? There is always another house.
FollowBefriend (13)102 threads3,759 comments
Best advice is don't get emotionally attached, the less you care the clearer the numbers are.
RE is all about emotional sales and pressure tactics, don't succumb and you'll be fine.
FollowBefriend4 threads2,094 comments
I believe the standard CAR forms include an "offer expiration date"? I thought this was fairly standard. At any rate, you are under no obligation to buy after that date. You are free to submit a new lower offer if the deal falls through on Friday. When does your current offer expire?
FollowBefriend65 threads188 comments
Based on what you wrote, it seems clear that your agent is weak. Many offers that were written for me stated that the offer must be accepted or rejected on submission. This is common. I have been in deals where a realtor says they are accepting offers on a specific day. This is common in a hot market. When this happens, you submit your offer on that day, not before, the realtor and property owner may field several offers, one immediately after the other, but you know the outcome usually within an hour. You may also have an opportunity to submit a second offer in this kind of situation.
Regarding having sympathy for a vet, that is horseshit. He is getting preferential treatment. I am unaware of any law stating that a vet gets that kind of special treatment in that kind of situation.
In any case, the rules of engagement are clear for this kind of transaction. I have seen realtors break pretty much every rule but your agent should be protecting you.
I think you need a new agent.
The one good thing you said is that you are not emotionally attached to it. If you don't get this one, there will be many others.