When bad things happen to good offers

From reader Cos Cobber Not Cos Cobber comes this tale of woe:

You say that there are no contracts out there but this time, instead of being too late or missing one, my favorite possibility got ’stolen’ from under me.
Someone came along and reportedly offered asking price or thereabouts and we weren’t even called to counter offer. What do you make of that one?

I answered him in the Comments section as follows:

Wow! No contract has been reported yet but that’s good news for the seller and of course bad news for you. I have been preaching that, even in this market, there are buyers out there but they’re far apart from the sellers on price. This house was obviously priced intelligently if it appealed to both you and at least one other buyer.

As for losing it without receiving an offer to beat the other offer, not everyone wants to get into a bidding war. A good offer, by which I mean a good price with few or no contingencies, is a desirable thing to have in hand and rather than risk angering that offerer and perhaps losing him by trying to squeeze a few more dollars out of the deal, it can make sense to just accept the offer as is.

And that brings up another thing I’ve warned buyers about before. Your offer may not be the only one out there. I’m all for making aggressively low offers, especially in this market, but if you find a house you like and if its price is okay then you, too might want to resist the urge to squeeze out that last dollar. Satisfied buyers and sellers make for solid transactions and good will can smooth out any rough spots that may crop up between contract signing an closing. Sometimes, wringing the last bit of juice from a deal is not the wisest course of action, in real estate or business. 

1 Comment

Filed under Buying/Selling Greenwich Real Estate, current market conditions, pricing

One response to “When bad things happen to good offers

  1. too late

    I’m not Cos Cobber. I do agree with you though. The property was priced reasonably, the other buyers were ready. By ready, I mean ready to throw caution to the wind and ignore the continued threats of the sliding market. They apparently are buying it to rebuild. Like you say, they are buying with cash. Obviously cash which hasn’t been halved by the markets recently or maybe with their severence pay! We haven’t got ours yet!

    Thank you for your blog and Happy Thanksgiving.