Real Estate

Post Offer Day - How to validate offers that came in?

  • Last Updated:
  • May 6th, 2021 8:26 pm
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes

Post Offer Day - How to validate offers that came in?

Hi guys,

So for folks who bought recently, how would you validate that what you have been told by your agents is accurate? On the offer presentation day, after witnessing listing agent completely ignoring the deadline to register the offer, I now have doubts that the information came from the listing agent (that they had offers higher than mine) might not have been truthful. So I contacted RECO with my purchase agreement and I was just amazed at how they replied.

How useful is the information if you do not tell me the price of other offers on the table? Does this mean that the listing agent can pretty much say that they have the higher offer as long as the offer is "registered"? There is simply no way for a buyer to know what the price of other offers after the fact. I am not saying I am resentful about the price I paid but going through the process of purchasing a property today, makes me wonder there are just so many opportunity for anyone to falsify/misrepresent the information that may affect people's lives. (This is my 3rd purchase and me being the only offer on the table for 1st/2nd purchases, yes I was just blown away by this market which I had to remove all my conditions and still had to raise my bid)

Is this something new? Definitely not. Sorry for my rant guys. Greatly appreciate if anyone has tips to find out the other offers that were registered.
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29 replies
Deal Fanatic
Mar 27, 2004
5859 posts
3772 upvotes
Toronto
There is no way to find out what the other offers are unless listing agent tells you. you can only find out how many offers there were which can be verified by asking for the 801 forms that the listing brokerage received.

no one put a gun to your head to offer the price you offered. if you didn't believe what the listing brokerage or your own agent told you. don't offer and take the chance it was all a lie.
Full-time Realtor
Deal Addict
Mar 2, 2017
2189 posts
3884 upvotes
Toronto/Markham
rapashoo wrote: Hi guys,

So for folks who bought recently, how would you validate that what you have been told by your agents is accurate? On the offer presentation day, after witnessing listing agent completely ignoring the deadline to register the offer, I now have doubts that the information came from the listing agent (that they had offers higher than mine) might not have been truthful. So I contacted RECO with my purchase agreement and I was just amazed at how they replied.

How useful is the information if you do not tell me the price of other offers on the table? Does this mean that the listing agent can pretty much say that they have the higher offer as long as the offer is "registered"? There is simply no way for a buyer to know what the price of other offers after the fact. I am not saying I am resentful about the price I paid but going through the process of purchasing a property today, makes me wonder there are just so many opportunity for anyone to falsify/misrepresent the information that may affect people's lives. (This is my 3rd purchase and me being the only offer on the table for 1st/2nd purchases, yes I was just blown away by this market which I had to remove all my conditions and still had to raise my bid)

Is this something new? Definitely not. Sorry for my rant guys. Greatly appreciate if anyone has tips to find out the other offers that were registered.
Is this a rant or a question? It's unclear.
Realtor, Investor, CPA - Collaborate with like minded people
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes
oasis100 wrote: no one put a gun to your head to offer the price you offered. if you didn't believe what the listing brokerage or your own agent told you. don't offer and take the chance it was all a lie.
Right.

So everyone should just take whatever information they were fed and move on correct?

Thanks for your help.
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes
RichmondCA wrote: Is this a rant or a question? It's unclear.
It's bit of both. I understand that I don't even know how to begin.

Rant : I know that there is no way to find out the price of other offers and it's frustrating.
Questions : I still want to know if there is a way.
Last edited by rapashoo on May 6th, 2021 9:26 am, edited 1 time in total.
Deal Addict
Mar 2, 2017
2189 posts
3884 upvotes
Toronto/Markham
rapashoo wrote: Right.

So everyone should just take whatever information they were fed and move on correct?

Thanks for your help.
Who makes the final decision on price paid?

That's the person you should talk to.
Realtor, Investor, CPA - Collaborate with like minded people
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes
RichmondCA wrote: Who makes the final decision on price paid?

That's the person you should talk to.
But that person does not have the information that I want to know.
Deal Addict
Mar 2, 2017
2189 posts
3884 upvotes
Toronto/Markham
rapashoo wrote: But that person does not have the information that I want to know.
Those are the rules we are all given and have to abide by. Is it fair? That's an entirely separate discussion and it's irrelevant to your post.

How you play within the crappy rules is what matters. Complaining about it after the fact when you knowingly did what you did is on you. Not trying to be a dick, but this is reality. You aren't the only one that feels this way, where was your realtor in this whole thing?
Realtor, Investor, CPA - Collaborate with like minded people
Banned
Apr 29, 2021
91 posts
85 upvotes
rapashoo wrote: It's bit of both. I understand that I don't even know how to begin.

Rant : I know that there is no way to find out the price of other offers and it's frustrating.
Questions : I still want to know if there is a way.
Why would you be entitled to know what somebody else offers?
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes
Swisha wrote: Why would you be entitled to know what somebody else offers?
I guess not.
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes
RichmondCA wrote: Those are the rules we are all given and have to abide by. Is it fair? That's an entirely separate discussion and it's irrelevant to your post.

How you play within the crappy rules is what matters. Complaining about it after the fact when you knowingly did what you did is on you. Not trying to be a dick, but this is reality. You aren't the only one that feels this way, where was your realtor in this whole thing?
He was with me the whole time and I trust him that he passed on whatever the listing agent told me. Yes, I understand where you are coming from and I know there is nothing I can do to make this change. I just wanted to know if there were any way.
Newbie
Apr 14, 2021
12 posts
14 upvotes
Even if my offer wasn't accepted, I won't want many people has access to the information of my offer because it is none of their business and the offer contains my sensitive information. So the rules protects me somehow, not just seller and realtors.
Member
Dec 25, 2019
266 posts
315 upvotes
i think for privacy concern , u cant force other offers to be visible , but rule can be changed to asking other potential buyers if they want their offers to be visible or not to other potential buyers would solve the privacy issue ... just a thought ... some might be ok with that.
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes
blackmoon2408 wrote: Even if my offer wasn't accepted, I won't want many people has access to the information of my offer because it is none of their business and the offer contains my sensitive information. So the rules protects me somehow, not just seller and realtors.
Right. Not asking for personal information though. Just the price I am after.
Easy401rider wrote: i think for privacy concern , u cant force other offers to be visible , but rule can be changed to asking other potential buyers if they want their offers to be visible or not to other potential buyers would solve the privacy issue ... just a thought ... some might be ok with that.
Yes, this is where RECO is coming from. They consider the offer price as "content" of the offer and completely block it from the buyer to access it.
Banned
Apr 29, 2021
91 posts
85 upvotes
Easy401rider wrote: i think for privacy concern , u cant force other offers to be visible , but rule can be changed to asking other potential buyers if they want their offers to be visible or not to other potential buyers would solve the privacy issue ... just a thought ... some might be ok with that.
Why would a bidder want their offer to be known by other bidders? Face With Tears Of Joy
Deal Addict
Aug 31, 2010
4839 posts
2847 upvotes
This is just the way it is. The only way you'll find out is if the listing agent tells you. The agent could have a $100k offer and your $150k offer, and tell you "it's too close, go and come back with your best offer" and you come back at $160. That's on you, you could have stood firm at $150, but you you were comfortably paying $160, but everybody wants to pay the lowest.. shoot, you could have the highest offer and still lose, simply because they don't like you.

This happens outside of real estate as well, especially in M&A. It's negotiation 101 - send top 2-3 back and say they're "close but not there yet, we need xyz fixed" and everybody increased with their offer if there's room. It's how you find out who came in with their best offer or not. Whether or not you're comfortably paying what you paid to win is on you.
Even more basic: you're buying something on Kijiji and make an offer, but the seller says "Sorry, someone offered me $10 more", do you request to see the text messages prior to saying "fine i'll give you $15 more and meet you in 5 minutes"?
[OP]
Deal Addict
Mar 22, 2010
3049 posts
913 upvotes
hvc wrote: This is just the way it is. The only way you'll find out is if the listing agent tells you. The agent could have a $100k offer and your $150k offer, and tell you "it's too close, go and come back with your best offer" and you come back at $160. That's on you, you could have stood firm at $150, but you you were comfortably paying $160, but everybody wants to pay the lowest.. shoot, you could have the highest offer and still lose, simply because they don't like you.

This happens outside of real estate as well, especially in M&A. It's negotiation 101 - send top 2-3 back and say they're "close but not there yet, we need xyz fixed" and everybody increased with their offer if there's room. It's how you find out who came in with their best offer or not. Whether or not you're comfortably paying what you paid to win is on you.
Even more basic: you're buying something on Kijiji and make an offer, but the seller says "Sorry, someone offered me $10 more", do you request to see the text messages prior to saying "fine i'll give you $15 more and meet you in 5 minutes"?
No I guess not (on Kijiji analogy) and interesting point on M&A, it's called "winner's curse" on the company winning with the highest bid but later on suffers the financial distress. Anyway, there is no other way to put this other than this is how it is. BUT, I believe that the difference between M&A and R/E market is people are bidding on the place they actually live in. I am talking about the place they spend their time with their family and raise their kids from. So emotion is definitely a factor when they get pushed out of the bidding and look for another place to bid on. To me, I just wish that there were little more transparency in this market.

After all, we are not buying commodities here (maybe to some). Some of us are actually buying a place to settle.
Sr. Member
Jan 28, 2017
939 posts
982 upvotes
hvc wrote: This happens outside of real estate as well, especially in M&A. It's negotiation 101 - send top 2-3 back and say they're "close but not there yet, we need xyz fixed" and everybody increased with their offer if there's room. It's how you find out who came in with their best offer or not. Whether or not you're comfortably paying what you paid to win is on you.
Even more basic: you're buying something on Kijiji and make an offer, but the seller says "Sorry, someone offered me $10 more", do you request to see the text messages prior to saying "fine i'll give you $15 more and meet you in 5 minutes"?
Agreed. Think of all the PE shops and big corporates bidding on a target co or distressed asset, same thing happens but at a much grander scale. Submit your best bid (with any contingencies) and the bankers/seller will circle back with the top contenders for a second round. No different than buying a house.

You can argue that M&A transactions act in "better faith" as you have your firm's reputation on the line vs. a singular RE agent. But reality is (and I'm NOT siding with realtors here) that as a buyer in a bidding war, you need to adapt and play their game. If you don't want to, don't overbid or pay the price for precon.
Deal Addict
Aug 31, 2010
4839 posts
2847 upvotes
rapashoo wrote: No I guess not (on Kijiji analogy) and interesting point on M&A, it's called "winner's curse" on the company winning with the highest bid but later on suffers the financial distress. Anyway, there is no other way to put this other than this is how it is. BUT, I believe that the difference between M&A and R/E market is people is bidding on the place they actually live in. I am talking about the place they spend their time with their family and raise their kids from. So emotion is definitely a factor when they get pushed out of the bidding and look for another place to bid on. To me, I just wish that there were little more transparency in this market.

After all, we are not buying commodities here (maybe to some). Some of us are actually buying a place to settle.
Emotions come into the M&A front as well, trust me. You just need to stay firm on your valuation and comfort. You may stretch a bit, that's fine, but it's just transactions 101. You're always wondering "shoot, did I pay too much? Did I get hustled?" after you win - it's just the way it is. I don't know your figures, or what happened, etc., but you were clearly comfortably paying what you paid, otherwise you wouldn't have offered it. Was it too much? Probably (given current state of the market). Did you increase your offer even though you didn't need to? Maybe. But, how were you to know? You settled on a price, offered it and won - it is what it is.

Even if you got out-negotiated, the other agent is going to tell your agent "man, it was so close, you guys won by like $5k" not "hah, you idiot the other offer was so low you're a clown." Enjoy your purchase and stop trying to figure out if you were out-negotiated.
Deal Addict
Aug 31, 2010
4839 posts
2847 upvotes
bear20 wrote: Agreed. Think of all the PE shops and big corporates bidding on a target co or distressed asset, same thing happens but at a much grander scale. Submit your best bid (with any contingencies) and the bankers/seller will circle back with the top contenders for a second round. No different than buying a house.

You can argue that M&A transactions act in "better faith" as you have your firm's reputation on the line vs. a singular RE agent. But reality is (and I'm NOT siding with realtors here) that as a buyer in a bidding war, you need to adapt and play their game. If you don't want to, don't overbid or pay the price for precon.
There's nothing worse than not having a 2nd round. Because it's immediately.. "shoot, what did we miss? what did we just do.." if you win free and clear on round 1. Believe me lol.

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