I mentioned the cash offer we made on Saturday on behalf of buyers hoping to purchase a home in Carlsbad. It finally came to a conclusion last night.
It went the same way all of the other multiple-offer situations have gone:
- It dragged on for days.
- Little or no communication.
- No transparency about the process or how a buyer will be selected.
- No open bidding.
After a day of being kept in the dark, I suggested to my buyers that we should improve our offer and just hope for the best. We submitted a new offer above the list price, 14-day closing, and free 30-day rentback. A worthy offer!
I got the call late yesterday – Sorry, we’ve gone in a different direction.
I appreciated the call because they usually come by text so the listing agent doesn’t have to offer any explanations. Because I had the agent on the phone, I pleaded with him to give me the winning sales price, which he did.
When I told my buyer about the winning bid, he said,
“I would have paid that.”
“IN FACT, I WOULD HAVE PAID MORE THAN THAT.”
It’s not just about treating all buyers and buyer-agents fairly (part of the Code of Ethics).
It’s about LEAVING MONEY ON THE TABLE, which is happening everywhere because listing agents are too lazy or inexperienced to conduct a proper bidding war. Even if you don’t have the guts to do open bidding like I do, then at least give every buyer a chance to make their highest-and-best offer, which used to be the standard up until this year.
Now, the listing agents only worry about grabbing their favorite offer, and going back to sleep.
That’s why Buyer’s like a true auction format as it offers full transparency !
Sellers like an auction too in a rising market. Have JTR do a modified auction process for you to get the best price.
Unfortunately, many realtors are either dishonest or not the sharpest tools in the shed. You pay people peanuts and you get monkeys.
Get good help and you’re welcome for the plug.
Thanks NCM!
I mean, this isn’t rocket science? What you describe makes no sense, and to do it right isn’t some next-level genius? When we bought our first place in LA in 2006, every single listing did exactly this: quick, rounds, “can you beat this specific price?” Transparency, and speed. And yes, sometimes the absolute highest bid didn’t win (shhh we lucked out, they kept the sale in house and the seller lost a few $k, but they knew our bid was good). But we watched dozens and dozens of sales go the same way, green agents, seasoned agents. Everyone in LA county did the same exact thing.
San Diego just seems like the slow kid or a guy with short man’s complex – trying to be worldly but failing. I don’t know why that is?