patrick.net

Ok, I'll start.

"Maybe you should take one of them"

"So do I, each one lower than the last"

"Are any of them as riduclously high as your asking price"

Probably depends on your area. For me, we say nothing and watch the house sell to one of the higher offers. Actually, the most recent time it was "9 higher offers." You should see the looks on their faces when the house sells, and they get their 3%.

SIX PEOPLE! are going to live in THIS house?
What are they Guatemalan?
...well maybe this the neighborhood for me.

Then hang up.

"Why should I care and why are you wasting my time talking to me if you have better offers."

"Obviously you should take the higher offer, right?"

“If I were you, I would take the highest offer.”

" I'll Give ten dollars over the highest offer."

I once met the same realtor at a home, that went PENDING and back to ACTIVE within a month.

He said : "we have 4 offers already"
ME : "last time during the open house you said you had multiple offers, and house is back on the market."
Him : "hehee, yeah the offers fell through"
Me : "yeah sure buddy, we all know this MULTIPLE OFFER game" (I did a quotation with my hands for 'multiple offers' and walked out.

Felt pretty good!

pkowen says

“So do I, each one lower than the last”

“Are any of them as riduclously high as your asking price”

Classic! As camping says, it depends on the area. In my area(94087), they most likely have 30-40% of the number they mention. when they say 6, it usually means 2 people have an offer. I could come back and see in the MLS later, it would've sold over 1k or 2k over asking. Its a good sign per se. It used to be 30-40K over asking, idiots!

http://www.redfin.com/CA/Garden-Grove/11932-Debbie-Ln-92840/home/3958908

"Over" 20 offers.... we said 'oh hell no'.

Aw, you guys need to think like a realtor. A sarcastic punchline ends the charade way too quickly. If they're playing a sucker game with you, you owe them a sucker game back! I'd start off with:

"Oh my! What do you think we should do? Should we come up even with the highest offer, or should we bid 10% more immediately to be sure our offer is better than everyone else's? Do you think that will be enough?"

Once you get the realtor salivating uncontrollably, work them with all sorts of little hesitations. "I don't know, I wasn't crazy about the tile in the bathroom. ... But did you see the candles? I didn't like their taste in decorations! That vase was like fingernails on a chalkboard. ... What about the flowers, honey? I'd prefer tulips. They didn't have any tulips. ... What about the cat hair? You know I don't like cats."

See how many ridiculous tasks you can get them to sign up for. That'll give you an indication of their true level of desperation. At the very end, you can cave hopelessly and say, "I guess there's just no chance of us getting this property, if there's so many other bidders. Maybe the next one." Act petulant and disappointed. Distantly imply that losing the deal was the realtor's fault. Ask if they can find out the realtor for the winning bidder.

A few days later, dump the realtor anyway. After all, do you really want a realtor who is either: 1) blatantly trying to pump up your buying price, or 2) too dumb to realize the other realtors are playing them for a fool?

Brand says

Aw, you guys need to think like a realtor. A sarcastic punchline ends the charade way too quickly. If they’re playing a sucker game with you, you owe them a sucker game back! I’d start off with:
“Oh my! What do you think we should do? Should we come up even with the highest offer, or should we bid 10% more immediately to be sure our offer is better than everyone else’s? Do you think that will be enough?”
Once you get the realtor salivating uncontrollably, work them with all sorts of little hesitations. “I don’t know, I wasn’t crazy about the tile in the bathroom. … But did you see the candles? I didn’t like their taste in decorations! That vase was like fingernails on a chalkboard. … What about the flowers, honey? I’d prefer tulips. They didn’t have any tulips. … What about the cat hair? You know I don’t like cats.”
See how many ridiculous tasks you can get them to sign up for. That’ll give you an indication of their true level of desperation. At the very end, you can cave hopelessly and say, “I guess there’s just no chance of us getting this property, if there’s so many other bidders. Maybe the next one.” Act petulant and disappointed. Distantly imply that losing the deal was the realtor’s fault. Ask if they can find out the realtor for the winning bidder.
A few days later, dump the realtor anyway. After all, do you really want a realtor who is either: 1) blatantly trying to pump up your buying price, or 2) too dumb to realize the other realtors are playing them for a fool?

These are all fantastic.

We've used this one:

6%'er: "We've had several offers"

Us: "Oh, really?" >crestfallen look< "OK. We can't compete with that... thanks anyway..."

6%'er: "Well, don't you at least want to put in a bid? you never know..."

Us: "No, that's OK. We aren't into biding wars. We just don't work like that, and we won't make offers under pressure. It's just not good practice, we look at a lot of properties and need time to evaluate them, think things through. But thanks again..."

6%'er: "But you can bid and then work things out, it's only a bid deposit and they never cash the check"

Us: " I'm really sorry but we just don't operate like that... right? (look to spouse, who gravely shakes head at 6%'er and frowns). Thanks anyway."

Leave the premises. Realtor looks unhappy and aggravated.

Go to the bar later, LMAO thinking the moron's game blew up in their face. Best part is, all we said was true.

Here's another one we've used when the salesperson asks if they can show us more houses than the one I asked about, it drives them CRAZY:

Realtor: "How much is your budget?"

Us: "That depends."

Realtor: "But how much is your price range? It will help me find appropriate listings for you."

Us: "It depends on the house. Our price range for one house will be different than another."

Realtor: "But you must have an idea how much you are willing to spend"

Us: "What we are willing to spend depends on the house. If a house is overpriced or presents some kind of nightmare, we aren't willing to spend anything at all. We are willing to spend more on a house in good shape and more land than something on the highway and less land. You see if a house is a good value for what it is, we will consider it".

Realtor gets huffy: "Well you must have an idea of what you are pre-qualified for, so you can buy the house"

Us: "That isn't an issue, we take care of that and don't waste anyone's time".

>Silence<

Realtor: "Can you give me a range where you'd like to work"

Us: "I'm sorry but not really, as if the house is worth $300,000 and they are asking $600,000, it's not in a range we'll pay".

Realtor: "I need a range to work with you"

Us: "I'm sorry but we make it a practice to not disclose that. We'll tell you if we are not interested in looking at something. We'll take a look at all listings between $0 to 2 million in ___ (xyz neighborhood)."

It has resulted in a broad range of listings, and eventually not one has refused to work with us. The vast majority of listings here are 'exclusive' and not on the MLS, it's like a cartel. No doubt it's the only way the leeches stay alive here.

I like to ask." never mind bidding on this cracker jack card board POS,...what's all this shadow inventory talk, when can i get in on that action?"

just dumb time waisting questions That get answered in different ways. I like to see them dance.

I got 6 offers, each less that the last.

Ha, love it

Just before I was ready to quit a job and the boss was riding me I would tell him, "I only have 2 speeds, and if you don't like this one you sure as hell won't like the other one." Of course I already had another job lined up.

Brand says

See how many ridiculous tasks you can get them to sign up for. That’ll give you an indication of their true level of desperation. At the very end, you can cave hopelessly and say, “I guess there’s just no chance of us getting this property, if there’s so many other bidders. Maybe the next one.” Act petulant and disappointed. Distantly imply that losing the deal was the realtor’s fault. Ask if they can find out the realtor for the winning bidder.
A few days later, dump the realtor anyway. After all, do you really want a realtor who is either: 1) blatantly trying to pump up your buying price, or 2) too dumb to realize the other realtors are playing them for a fool?

It's always fun to see a realtor's face when you ask them if they can recommend a realtor who can actually get a bid taken seriously.

“good comebacks for ‘we have multiple offers’ ?”

Does it come with a pre-approved Interest only ARM loan ?

LOL! which came first the fake multiple offers on prices, no one could afford, or the ARM loans to push the deal forward ?

For those who are infavor of more government and heavy hand regulations on Banks and Wall Street, where is regulations on REA Industry ?

Brand says

Aw, you guys need to think like a realtor. A sarcastic punchline ends the charade way too quickly. If they’re playing a sucker game with you, you owe them a sucker game back! I’d start off with:
“Oh my! ”
[..]A few days later, dump the realtor anyway. After all, do you really want a realtor who is either: 1) blatantly trying to pump up your buying price, or 2) too dumb to realize the other realtors are playing them for a fool?

Love ... it!

Like any other industry the REA are all connected through their local and regional associations.
Right smack where I live you have the "Silicon Valley Real Estate Association"...
Their motto.. "RE doubles every 10 years"....

To listing agent: Here is my updated offer.

what a bunch of idiot responses. For clarification, I've been writing about the bubble, predicting prices dropping since 2005; Look me up on zillow, azrob... you can search for some classics like "get in the lifeboats now" where I predicted a steep decline in Phoenix prices.

And guess what? on lower priced homes, you get multiple offers. Period. take an area that has homes listed at 500K, list one for $425K and dozens of offers pour in. Now, even if I as the listing agent have 10 offers, if someone else asks, I'm going to encourage them to write one. An offer isn't a contract until my seller signs it, and my duty is to get the seller the highest price. Plus a seller might want a stronger offer: more downpayment, not FHA, quicker close, whatever.

So smugly laugh and write some more allegedly witty remarks, most of the times the agent isn't lying in my experience.

azrob00 says

what a bunch of idiot responses. For clarification, I’ve been writing about the bubble, predicting prices dropping since 2005; Look me up on zillow, azrob… you can search for some classics like “get in the lifeboats now” where I predicted a steep decline in Phoenix prices.
And guess what? on lower priced homes, you get multiple offers. Period. take an area that has homes listed at 500K, list one for $425K and dozens of offers pour in. Now, even if I as the listing agent have 10 offers, if someone else asks, I’m going to encourage them to write one. An offer isn’t a contract until my seller signs it, and my duty is to get the seller the highest price. Plus a seller might want a stronger offer: more downpayment, not FHA, quicker close, whatever.
So smugly laugh and write some more allegedly witty remarks, most of the times the agent isn’t lying in my experience.

My comments were not jokes. If you have multiple offers, why tell me? If you are looking for advice, the only advice I could give an agent is to take the highest offer that can actually pay. My offers will always be base on what I think the place is worth and what I can afford and not what others are offering. If anyone changes their offer based on the comment that there are other offers and then becomes the highest bidder their offer will more likely fall through today.

Why turn a sure sale into a possible lost sale by talking people into paying more than what they are able to? I am sure this tactic work well during the boom; you are an idiot if you think it is going to serve you well during the bust.

BTW, what is your record for selling the same house multiple times, 3, 5, 12 times? I am guessing that during the bust agents gloated about the number times they sold the same house? It would have been to your advantage to sale to people that could not afford the house so that it would be back on the market sooner. Since you had multiple offers for that house, it should have been a sure sale each time you got it back on the market.

Some realtors would even send unsolicited post cards to targeted houses suggesting now is the time to sale. I think I just figured out why.

azrob00 says

So smugly laugh and write some more allegedly witty remarks, most of the times the agent isn’t lying in my experience.

Why thank you for your permission to smugly laugh. But my remarks "allegedly" witty? I take exception with your description of the stuff we say here - 'cause we're creative and funny. Perhaps you don't have a sense of humor... most realtors don't these days. Again, there's nothing "alleged" about my witty repartee - nor is there anything "alleged" about the hilarious comments of many others here on this board.

I read some of your comments. Congrats on "calling" the bubble - you were the only one in the world doing so at the time. I'll just ignore Irvine Housing Blog, Patrick.net, and Dr. Housing Bubble's predictions... along with hundreds of other bloggers' predictions.

If you had been following the postings of several patnet diehards, you'd realize that you were behind the curve. For example, there's a hermit living somewhere near Oil City PA who's in his early 20's, selling stuff on ebay, riding his bike, growing his own veggies and practicing zerosexuality, who smugly predicted the end of the world as well.

There are people here who are attempting to buy now and are speaking with condescending realtors who insist that they have multiple offers and tell the prospective buyers not to bother unless they jack up their offer - and it's sleazy. The real estate "profession" is full of desperate liars who are in it for their own benefit, the higher the offer, the more the realtor makes for doing nothing.

Nomograph says

Wow, you’re like WAY smarter than everyone else and stuff.

You're a math professor who sells real estate on the side. During the bubble years did you present yourself as a realtor who was a math professor on the side? If you were in California, would you present yourself as an actor first, a math professor second?

Just askin'

Elliemae's feelings are hurt, 'cause someone implied she's not funny. Here she sits, all broken hearted...

Nomograph says

azrob00 says

what a bunch of idiot responses.

You sound upset. What’s the matter?
azrob00 says

I’ve been writing about the bubble, predicting prices dropping since 2005; Look me up on zillow, azrob

Wow, you’re like WAY smarter than everyone else and stuff.
azrob00 says

I as the listing agent

Ah, I see. Get a job, sir. The bums lost.

You ... you ... you ... human PARAQUAT!

here is my comeback:

"Maybe we can work out a deal, lets say those 6 offers dissapear if I allow you to represent me on this house? You can then double dip and get commissions on both sides, all I am asking that you lower the asking price 5%. You will still make far more with the 6% commission than you would accepting one of those multiple offers."

The game is to get them to buy into the idea that 6% is much higher than 3%, only do this if you really want the place.

When I'm told that the seller has multiple offers, I'm tempted to tell the broker that we've also put offers on several other houses. Fear of loss works both ways ...

Fitzclarence: putting offers on multiple homes could set you up to be sued. If two sellers sign those offers, before you rescind one of them, you will be committed to buying both homes. committed as in legally bound to buy both.

Now, I know from the other thread, you guys don't need agents, you know everything. However, if that happened to my seller, who passed on other offers to take yours only to have you cancel because you liked your other contract better, you could expect litigation, and a very expensive lesson.

On the original subject, when an agent says they have multiple offers, they almost certainly do. They may be weak offers, low offers, whatever. Without written permission from our seller, we can't tell you how many or for what amount anyways. So would you prefer the agent tell you nothing? That certainly pisses buyers off too when they spend the time to write and deliver an offer.

Here is what I see on this thread: a bunch of people who are far too eager to buy. You are likely buying way too early, in the eye of the storm so to speak, and will watch prices drop again over the next few years. The shadow inventory still coming is sufficient to tank the market, but rather than do the logical thing, and wait another year or two, you'd rather claim all the agents are lying presently, when presently supply versus demand are not on your side, homes truly are getting multiple offers.

And how about the other clever technique used by real estate agents: "They're only accepting full-price offers"? What are some ways to get around that, other than walking away and hoping that time will reduce the price like a waterfall wearing away the rocks underneath?

Or the classic low ball offer thru the listing agent hoping for a double commission. He will discourage you to put an offer in at all.

This is what I've seen happening in the market that I am interested in. List price: $400k. Offer 375k. Buyer agent interested in helping his guy put in an offer of $450k, calls the agent to try to get "information." Listing agent says "we have multiple offers. They are all very high. You're gonna need to go into the $500k range if you want this property."

Buyer agent relays that information to buyer - thus, pumped up price. Seriously. Most buyers in my market will be pissed off if they had to show all bids publically after the sale is closed. You get people outbidding the second highest by $100k all because the buyer agent encouraged them to do it with information they deemed reliable from the seller agent. What do they care? It's not their money. Just tell the buyer what the seller agent said.

@azrob00

I would say you've got about 50% of the crowd pinned. While the other 50% believe that even in good times, the average realtor adds nothing to the mix. By having so many bad ones out there, it just ruins good and bad times by having idiots hyped up by people who don't understand the market at all and will do whatever they're told is the best way to buy a good investment.

On top of that, the majority see house buying as wealth transfer, which doesn't need two people and a large chunk of the transaction being taxed when both buying and selling.

If you put two offers in a home without any way to back out, you're already in trouble. A good vague clause is enough to get you off the hook in most cases. It must pass a general inspection is enough. "oh a light was burnt out... I don't want it.."

I don't see the need for a comeback. A buyer should already have in mind what they will pay for something, whether it is a car or a widget or a grocery item, and share that information with nobody.

Perhaps offer a lower price when it is practical to do so, like one would do for a house or a car or some other negotiable purchase, (but probably not a bunch of groceries at the supermarket).

If the item costs more than the buyer decided on his own ahead of time, well then there's no need for a comeback. Just don't buy the item. That is what happened when my partner and I made offers on some homes we didn't buy. The "buyer's agent" who we wound up not using anyway (for a different reason though) was getting frustrated saying that we ought to be "players".

In "Devil Take the Hindmost", economist Edward Chancellor wrote about similar bidding wars for things like Tulip Bulbs, South Seas Co. shares, Florida Real Estate in the 1920's.

azrob00 says

So smugly laugh and write some more allegedly witty remarks, most of the times the agent isn’t lying in my experience.

Just curious - how much experience do you have? You have one listing on zillow and are a full-time math professor. How many sales have you made in the past ten years?

Not counting ones where you represented yourself or any family members.

REpukes only lie when they communicate.

azrob00 says

homes truly are getting multiple offers.

without an open process to allow bids to be seen by any and all concerned, I am happy to remain a sceptic of the entire "multiple / cash / full-price / 20% over asking" game. But, thats just me.

Now it's been quite some time since I bought a house, but as I recall when we made an offer it was somewhat straight-forward. You put your offer plus your contingencies put a set period of time, say 48 hours for a response and send it with the realitor. If it's declined, you can amend your offer or walk away. If the seller accepts you put down an appropriate deposit and go through escrow. I have heard people talk of actually putting in a deposit WITH the offer. This seems an abuse to me to have my money with some shmuck while he plays his head games to attempt to squeeze a higher offer from you. They just want to lock you in to prevent you from finding another or better deal elsewhere. Total bullshit. I just let 'em know I'm interested in other homes and I'm going to buy one and maybe it will be theirs.

"If you're going to BS me and treat me like a fool, I'll do the same to you when I post your review Yelp."

azrob00 says

what a bunch of idiot responses. For clarification, I’ve been writing about the bubble, predicting prices dropping since 2005; Look me up on zillow, azrob… you can search for some classics like “get in the lifeboats now” where I predicted a steep decline in Phoenix prices

I will vouch for AZrob, i read some of his posts on Zillow some years back. Clearly a bear in my book.

Bap33 says

without an open process to allow bids to be seen by any and all concerned, I am happy to remain a sceptic of the entire “multiple / cash / full-price / 20% over asking” game. But, thats just me.

No! not just you Babs, pretty much everyone who is concerned about getting a real deal and not a Tojan horse instead. The process is broken. As I posted earlier, such practice has been exposed in Canada and Australia. Some trickle of bad (horrible!) practices have been exposed in the US, but very little is being done. Poor quality control leads to fraud and erosion of ethical values.

Totally agree with open bidding process. Being skeptial only lowers your risk of making a dreadful bad decision.

I wish More Realtors(tm) would read this Forum, wish more Realtors (tm) would post to this forum.

Danimal says

I wish More Realtors(tm) would read this Forum, wish more Realtors â„¢ would post to this forum.

LOL! reminds me of the scene in Casablanca with the French police closing Ricks down after the head of the police wins on the roulete table...

Rick: How can you close me up? On what grounds?
Captain Renault: I'm shocked, shocked to find that gambling is going on in here!
[a croupier hands Renault a pile of money]
Croupier: Your winnings, sir.
Captain Renault: [sotto voce] Oh, thank you very much.
[aloud]
Captain Renault: Everybody out at once!