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DaniJude
You're My Home <3
Member since 11/06 14815 total posts
Name:
Danielle
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Bidding Wars, anyone had one?
Has anyone had this happen to them? There are a few properties we inquired about and we were told "no showings until the open house" and I know that they are looking to create a little frenzy. But, there's no guarantee that will work.
Anyway... Just looking to see if anyone entered into a bidding war on a home and what the outcome was? Did you win? Did you end up paying over asking because of it? Details 
Thanks so much!
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Posted 2/12/13 1:27 PM  |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Bidding Wars, anyone had one?
We did. However, we bought at a time when bidding wars were common. The market was crazy. We lost the first house we bid on, and won the second one. We wound up paying $1 over asking price! ;)
I will tell you that my friend who has been looking for several months in Hauppauge/Smithtown/Commack has already been in bidding wars for great houses that are priced well. She lost out. Those houses went for asking price if not more. I will tell you that for a 4 bedroom 2.5 updated ( new kitchen, baths) colonial with a swimming pool on at least .25 of an acre, in those areas went for $550,000 or more.
where are you looking?
Message edited 2/12/2013 1:36:36 PM.
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| Posted 2/12/13 1:32 PM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Bidding Wars, anyone had one?
yes!! we bought in 2010 during the first time homebuyers incentive. Because of this, we kept losing out on houses that were going for over asking! Also when we found our house we did not want to lose it so we offered only 4k less than asking and got it. Looking back we probably over-paid but at the time we were sick of getting out-bid on houses we liked.
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| Posted 2/12/13 1:33 PM |
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dn413
LIF Infant
Member since 1/12 91 total posts
Name:
debbie
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Re: Bidding Wars, anyone had one?
we had one last yr in Smithtown.. We won but in the end I almost felt like was there actually other ppl bidding or did they make it up.. We went over asking. So if you really like the house you have to ask yourself what is it worth and how much do you want to spend. Our house was priced very low but we ended up putting a lot of money into it when it was all said and done..
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| Posted 2/12/13 1:38 PM |
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ANR1211
My loves
Member since 2/11 2131 total posts
Name:
A
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Bidding Wars, anyone had one?
This exact thing happened with the first house DH & I bought (a little over 3 years ago). There were no showings before the open house -- the open house was very short (2-3 hours total). Everyone was told at the open house that if they wanted to see the house again, they needed to schedule a second showing that day. The second showing needed to be done within 2 days of the open house. Offers needed to be in by the end of the week.
We put in a full price offer because it was so reasonably priced and we loved the house. Our agent called back to tell us that we should put in our best and final offer because it was a bidding war. We also put in an all cash offer (wound up getting a mortgage though). We bid almost $10k over asking and wound up paying $4k over asking due to some issues that came up after the inspection.
I will say that it was a great house for us and when the market dropped even more, we were still able to sell our first house for a profit when other houses were losing money (this summer). Make sure the house will hold value -- ours was a great starter home that was completely finished and it was right in the price range that most first time homebuyers look in!
Good luck!!!
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| Posted 2/12/13 1:38 PM |
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KatieP
LIF Adolescent
Member since 12/11 758 total posts
Name:
Katie
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Re: Bidding Wars, anyone had one?
we're having a no show until open house this weekend - but it has nothing to do with a bidding war, we just don't have time to prepare! we use an office as storage now, so we want to clean it out so people could see it and will not have time before open house.
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| Posted 2/12/13 1:51 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Bidding Wars, anyone had one?
almost every house I sold this year had mutliple offers- as both the sellers agent and the buyers agent
it was great for my sellers
more stressful for my buyers- but since they all listened to my advice they all got the houses
1 paid over asking by $10K- but once they fix up the place they will have $50-75K in equity and they are living there- it was priced below market value and they took my offer over a lesser cash offer b/c of how I put everything together
motivation has been a major factor- when I see someone come in strong or come up on the first offer- get all their paperwork together etc- it sends a message
a low ball offer- might not even get countered right now
but I agree- the no shows till the open doesn't mean they want a bidding war- it usually means they are not ready
I sold a listing in albertson 2 weeks ago with drive by only views
it's not a buyers market right now- the buyer that understands that and works accordingly will get the house
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| Posted 2/12/13 2:37 PM |
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DaniJude
You're My Home <3
Member since 11/06 14815 total posts
Name:
Danielle
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Re: Bidding Wars, anyone had one?
Posted by KatieP
we're having a no show until open house this weekend - but it has nothing to do with a bidding war, we just don't have time to prepare! we use an office as storage now, so we want to clean it out so people could see it and will not have time before open house.
Understandable - and b/c of the snow too, it's just hard 
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| Posted 2/12/13 2:38 PM |
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DaniJude
You're My Home <3
Member since 11/06 14815 total posts
Name:
Danielle
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Re: Bidding Wars, anyone had one?
Posted by MrsFlatbread
We did. However, we bought at a time when bidding wars were common. The market was crazy. We lost the first house we bid on, and won the second one. We wound up paying $1 over asking price! ;)
I will tell you that my friend who has been looking for several months in Hauppauge/Smithtown/Commack has already been in bidding wars for great houses that are priced well. She lost out. Those houses went for asking price if not more. I will tell you that for a 4 bedroom 2.5 updated ( new kitchen, baths) colonial with a swimming pool on at least .25 of an acre, in those areas went for $550,000 or more.
where are you looking?
In Smithtown - but at complete disaster shiit boxes lol.
We want a renovation 
Message edited 2/12/2013 2:40:28 PM.
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| Posted 2/12/13 2:40 PM |
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Re: Bidding Wars, anyone had one?
As others have said, multiple offers on properties are becoming the norm, especially on properties in the under $400K price point. The inventory of really affordable properties seems to be drying up and the houses that are priced to sell are flying!
I have counseled my buyers that it's more important than ever to have all of your ducks lined up before you start looking -- preapproval from a reputable lender, home inspector in mind, attorney lined up, etc. That way, if you find a home you want to make an offer on, there are no unnecessary delays while you wait to get a preapproval letter. Buyers need to show sellers that they are serious and ready, and that they can move quickly. And with a well-priced house, buyers don't have the luxury of thinking about a house for a week, scheduling multiple showings... by the time all that happens, a "hot house" will be gone.
It's also important for buyers to know the market and be realistic about their offers. If a house is priced right, coming in with a lowball offer is not to a buyer's benefit.
Also, I am seeing A LOT of investors out there, so when it comes to fixer uppers and distressed properties/short sales, buyers should expect to compete with all cash investors, which is tough.
Bottom line - It's more important than ever for buyers to be prepared and educated, and act swiftly and decisively. And then you can decide how high you want to go for a house. When I bought my house in 2008, there was no bidding war, we were the only offer. But we probably overpaid a bit -- knowingly -- when comparing the house to what was selling on the market. It was worth it to us, and we knew we were going to be in the house long term, so you can't always approach it as strictly about numbers. Sometimes paying $5K or $10K more than the listing price or what you believe to be the market value is worth it to get a house you love.
I also agree that "no shows until the open house" doesn't necessarily mean they are trying to start a bidding war. There are many reasons why sellers/listing agents take that approach, from cleaning up the house, to the listing agent wanting to keep it exclusive to her office for a few days, to the sellers not being available to show.
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| Posted 2/12/13 3:39 PM |
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DaniJude
You're My Home <3
Member since 11/06 14815 total posts
Name:
Danielle
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Re: Bidding Wars, anyone had one?
Thanks everyone
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| Posted 2/12/13 4:29 PM |
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Kizzy
LIF Infant
Member since 11/11 303 total posts
Name:
Kim
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Re: Bidding Wars, anyone had one?
Posted by dn413
we had one last yr in Smithtown.. We won but in the end I almost felt like was there actually other ppl bidding or did they make it up.. We went over asking. So if you really like the house you have to ask yourself what is it worth and how much do you want to spend. Our house was priced very low but we ended up putting a lot of money into it when it was all said and done..
Same here last year in north shore nassau. I'm always going to wonder if there really were other bids... We didn't go over asking but we got close to it.
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| Posted 2/12/13 6:31 PM |
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Onemoretime
LIF Adult
Member since 9/12 1077 total posts
Name:
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Re: Bidding Wars, anyone had one?
Yep, 2 years ago someone bidding against us paid over asking and paid cash. I refused to pay over asking! I do wonder if it was a setup. We wound up buying a different home.
7 years ago we were in a major bid war for our coop. The other people really wanted it, and yelled at us for taking it 
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| Posted 2/12/13 7:21 PM |
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AKD
LIF Adult
Member since 1/12 2637 total posts
Name:
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Re: Bidding Wars, anyone had one?
The house we're in now, had 3 offers the day of open house --- we outbid everyone by just $5K and ended up winning. Phew.
Other times we tried, we've gotten into a bidding war - the worst one was when the seller under-priced the house by a good $75K, and people went crazy and over paid. We backed out really quickly.
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| Posted 2/12/13 11:07 PM |
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CanThsBit
LIF Toddler
Member since 11/10 451 total posts
Name:
Kina
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Re: Bidding Wars, anyone had one?
We had our Condo on the market since Nov 1 didnt get much traction during Nov/Dec because of the holidays. As soon as the holidays were over people we're coming to check it out at least 4x a week, we decided to book a trip and go on vacation the last week of Jan We came back to a bidding war between 3 people, one guy actually ended up going way over asking price & of course we settled on that. He even put a clause in the contract that if the appraisal came in $5k less than his offer he will STILL go through with the purchase! To me that is just crazy, I could never pay for more than something is worth.
Just do your research of everything around the area and know what things have sold for in the past- and try to set your emotions to the side & not go higher on your price just because you want it knowing someone else wants it also.
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| Posted 2/13/13 1:04 PM |
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Re: Bidding Wars, anyone had one?
Posted by CanThsBit
We had our Condo on the market since Nov 1 didnt get much traction during Nov/Dec because of the holidays. As soon as the holidays were over people we're coming to check it out at least 4x a week, we decided to book a trip and go on vacation the last week of Jan We came back to a bidding war between 3 people, one guy actually ended up going way over asking price & of course we settled on that. He even put a clause in the contract that if the appraisal came in $5k less than his offer he will STILL go through with the purchase! To me that is just crazy, I could never pay for more than something is worth.
Just do your research of everything around the area and know what things have sold for in the past- and try to set your emotions to the side & not go higher on your price just because you want it knowing someone else wants it also.
I agree that buyers should do their research and only spend what THEY want to pay, versus getting caught up on the crazyness of a bidding war and going higher than they otherwise would have.
But as far as the guy that bought your condo... why do you think the guy paid more than it was worth? Regardless of what the comps say, any property is really worth what a buyer is willing to pay in an arms' length transaction. If he was willing to pay over asking price, and even more than the bank appraisal, then it was obviously worth that much to HIM, even if it wouldn't have been to another buyer.
I always tell my buyers that, unless they are buying an investment property, buying a home is more than just a purely financial transaction. It's important to be educated on the market, but there's a lot of factors (and emotions) that go into buying a home.
When I bought my home in 2008, before I was in real estate, we knew that we were probably paying maybe $10-20K more than we thought the comps dictated. But for us, it was worth it. We knew we'd be in the home long-term, we had seen a lot of homes, and I have no regrets about going that extra $10K for a lifetime of enjoyment in a house that is perfect for us and our family. To me, that is not "overpaying" but deciding what the home was worth to us.
And also, when anyone - an agent, an appraiser, etc. - advises on market value, they are looking backward looking data (recent sales), because that's the only thing available. In a fluctuating market, that data may not be spot on for what's happening 3 or 4 months down the road from the time the comp properties sold.
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| Posted 2/13/13 1:16 PM |
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KatieP
LIF Adolescent
Member since 12/11 758 total posts
Name:
Katie
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Re: Bidding Wars, anyone had one?
ugh in one right now. so stressful!!
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| Posted 2/14/13 8:16 AM |
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Mere09
So Dam* Lucky
Member since 10/08 6368 total posts
Name:
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Re: Bidding Wars, anyone had one?
We were in a bidding "war" and won.
I say war in quotations because it wasn't very dramatic. The house was a foreclosure and had been vacant for over a year. The bank had JUST dropped the price of the house significantly the day before we put our offer in. We loved the house so we put in our offer at their asking price. We heard back the next day that they had 2 offers, and that we needed to give them our best offer and they would make their decision. After getting some advice from our realtor, we decided to go up $2k...so $2k above their asking price. They accepted. 
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| Posted 2/15/13 1:57 PM |
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