Exchange

Posted on May 2, 2007 - Filed Under Business |

My offer was one of five offers submitted.

When putting together the offer I already knew the price being asked was under-market.  I didn’t have an idea as how far "under" it was.

The RealEstate Agent and I poured over a section of the MLS, which I had never seen, which shows what the last selling price was for houses.  The trick: find properties that are similar to the one I was bidding on which sold in the last year.

For this offer, two houses on a giant lot.  The front house: 3 bedroom, 1 bathroom.  The back house: 1 bedroom, 1 bathroom.

Additionally, we checked the houses which were currently in escrow.  Several similar houses, a few streets west of my location, were in escrow.

The difference between the market value and the asking price was $125,000.

My offer went out $5,000 over the asking price.  With four other offers, my offer needed to have something to stand out.  Why?  Since it was the first day of the listing, it stands to reason the people who constantly watch the MLS for under-valued properties, aka investors, would jump on this place.  Would it be impossible for a regular home-owner to stumble across this listing and bid?  Unlikely but it is possible. 

Five offers on the first day of listing in this slow Southern California market.  Quite wisely, the seller reasoned that their asking price was too low.  They came back $25,000 higher than their original price.

When I saw the counter-offer, I was annoyed they raised the asking price.  But was I really prepared to toss an offer and potentially make $100,000 instead of $125,000?

As an old colloquialism states:  I may not be the sharpest tool in the shed but I’m certainly not the dullest.

I met their counter, as did the others.  My offer was, once again, five thousand above their asking price.  I thought for sure the other offers would beat mine.

But that didn’t happen.

If you liked that post, then try these...

My first time on December 8th, 2005
First off, let me say that whomever invented the idea of putting chocolate chips on coffee cake should be shot!  This piece of heaven is going to make me diabetic!! Since I'm writing this blog about my business dealings, I'm going to share with you the first business venture I ever got involved with.

Going to the Bell on September 23rd, 2008
Clifford:  I'll have the Grilled Stuff Burrito, a soft taco supreme, and a medium soda.

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