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
3722 posts
1645 upvotes
hvc wrote: Enjoy your purchase and stop trying to figure out if you were out-negotiated.
This is exactly what I told my buddy and now I am in the same boat. Just shaking my head. What an insane market.
Last edited by rapashoo on May 6th, 2021 10:20 am, edited 1 time in total.
[OP]
Deal Addict
Mar 22, 2010
3722 posts
1645 upvotes
Thanks everyone for your input.

I sort of confirmed that there is no way for a buyer to know the price of other offers on the table (except the number of registered offers). At least I feel better on the fact that I tried.

Moving on.
Deal Fanatic
Aug 31, 2010
6931 posts
5854 upvotes
rapashoo wrote: This is exactly what I told my buddy and now I am in the same boat. Just shaking my heads. What an insane market.
Whenever there's imperfect information, you'll always wonder what if. Don't sweat it - it's normal. If you didn't stretch yourself purely based on emotions, and there was merit to the price you offered you're fine. Like you said, it's a home to live in.. Maybe you paid a bit more than you really needed to - but 25 years from now and in the grand scheme of things, who cares? You got what you wanted.

Enjoy.
Newbie
User avatar
Dec 28, 2020
57 posts
115 upvotes
Highly unlikely that listing agent would lie, it's dancing on a knife's edge where it's high risk low reward for the agent. The deadline for registrations and stuff aren't formally enforced, it's just so the sellers have enough time to review offers, the system won't prevent offers from coming in after. When I sold my house I still had people wanting to look or send offers 2-3 days after it said SOLD lol. Anecdotally, 2 properties where I thought the highest bid was ridiculous/fake turned out to be true, https://housesigma.com/web/en/house/JKd ... l-N5192424 https://housesigma.com/web/en/house/J6E ... m-N5198522. You need to do research have a number in mind you're comfortable with even if you overpaid or if market tanks.
Deal Addict
Mar 2, 2017
3307 posts
6334 upvotes
Toronto/Markham
ChadFullStack wrote: Highly unlikely that listing agent would lie, it's dancing on a knife's edge where it's high risk low reward for the agent.
Exactly, the incentive to lie when you have a sure thing and are inches from firming up is nonexistent. Agents wants to close, no squeeze the last 10k from the deal - sellers' motivation is aligned. It's mostly a fabricated internet story blown out of proportion from a few bad apples.
RE Broker
Deal Fanatic
Mar 27, 2004
8070 posts
6115 upvotes
Toronto
inexperienced buyer in today's market. you should be asking your agent to explain these obvious reasons why other offers are not and cannot be disclosed.
Full-time Realtor
Deal Fanatic
Mar 27, 2004
8070 posts
6115 upvotes
Toronto
rapashoo wrote: Right.

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

Thanks for your help.
wrong attitude. you don't like hearing the truth
Full-time Realtor
Sr. Member
Mar 11, 2002
904 posts
312 upvotes
I wanted to share my experience (and I hope it helps the OP) when I purchased my home in the fall of 2014 (GVR) we had been looking for close to 2 years, of the dozens of open houses we attended and on the several offers we placed (over asking) our Agent was told immediately after handing in the offer that it would not be entertained.(since the seller was trying to get developers to bid against each other)

On the home we finally ended up, on the MLS system it was initially listed at 774k (which changed to 799k) within about 10mins of the listing going up(prior to mls website release)

My initial reaction was that this was done on purpose to cast a wider net out to people who may have had 775 as a cap on their queries (to be fair I have seen this on properties that clearly were 1.8/2.8 million, but the initial mls listing had the first digit missing and was corrected prior to going on the website)

As I expected the open house (first weekend) had a ton of people with offers to be submitted Monday night. We initially offered 20k over asking and when submitting our agent advised us to be nearby/available in case of counter offers. Not surprisingly the Listing agent advised there was also another party who was interested and to submit our “best offer”

Our best offer was an additional 8k more (828k, over our 820k offer and a total of 29k over asking) Assessment at that time was 615k. That amount was our “max” we were willing to pay for that property, and if we lost it to someone 1k more then so be it..

We were told there were a total of 24 offers and that we”won” by 1k, we had conditions of inspection/financing/removing the tenant and the seller had a condition of closing 3 mths later (to allow them to find a new home)

I had the worse anxiety for the 3 months following as I questioned whether it was sane to go basically max to our budget on a “project” home.. we had vacations planned and paid for that weren’t as enjoyable as we were conscious about any unnecessary expenses.

Looking back even 2 years later we realized that we wouldn’t have been able to afford the same home even 3 mths later as the market took off. Since that time with the ups and “downs” the value has more than doubled since then.

Be happy with the home you got, and if it is a home (rather than a flip) the ups/downs in the market shouldn’t really matter as it is still a home you need to live in and any gains/losses won’t be realized till you sell.

Hope this helps you feel more comfortable in your decision.

Thanks
Deal Guru
User avatar
Mar 23, 2008
13006 posts
9968 upvotes
Edmonton
rapashoo wrote: Thanks everyone for your input.

I sort of confirmed that there is no way for a buyer to know the price of other offers on the table (except the number of registered offers). At least I feel better on the fact that I tried.

Moving on.
Keep in mind that there's more to an offer than just the $$$. Conditions often play a part on whether an offer is accepted or not, especially in a hot market.

C
Deal Addict
Oct 21, 2014
1771 posts
2499 upvotes
Burlington, ON
rapashoo wrote: This is exactly what I told my buddy and now I am in the same boat. Just shaking my head. What an insane market.
If it makes you feel any better if you got a mortgage you're purchasing with future cash, which is being massively devalued by money printing. The money you pay back in the coming years will be worth a lot less than it is worth today so you even though you paid X dollars for the home, the value of the dollars you return in the future to repay the mortgage will be far less than what they are today. The depreciation of the dollar will also increase your house price appreciation which will be tax free if this is your primary residence when you go to sell. Not bad at all.

One last thing - enjoy! You bought a house! No small feat these days.

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