1,052,211
When people buy with their egos, have no business overbidding, get all eBay and then remorseful, if the home even appraises.
Also, if anything is wrong with that house that they now perceive they overpaid for . . . they will want it fixed or become a flight risk. And the seller's also coming from ego thinking fine, let them go, someone else will pay it. And they usually won't because . . . hey, the house fell out. Now, what can we get it for?
:: disclaimer - I am jaded ::
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Bob "RealMan" Timm
Minot, ND
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Diana Dahlberg
Pleasant Prairie, WI
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Kathleen Daniels, Prob...
San Jose, CA
-
Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Joseph Domino 480-390-...
Scottsdale, AZ
1,543,823
Buyer's Remorse from the heated battle of multiple offers...very common last 3 years.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
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Nina Hollander, Broker
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Candice A. Donofrio
Fort Mohave, AZ
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Joseph Domino 480-390-...
Scottsdale, AZ
-
Lyn Sims
Schaumburg, IL
5,216,409
Problems disclosed upon inspection and appraisals are the common reasons.
-
Tony and Suzanne Marri...
Scottsdale, AZ
-
Margaret Rome Baltimor...
Pikesville, MD
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
4,572,183
I have seen this as well and so have my clients. I will answer as I have told them. . . "stuff happens". People change their minds. People decide they do not want to be in a multiple offer situation after the fact. People talk. To neighbors. To their relatives. And co-workers. Everybody else--it seems. People lose jobs. Or get transferred. People become pregnant. People pass away- - usually not at the same time. Yes...stuff happens...sometimes we know why and sometimes we don't.
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Margaret Rome Baltimor...
Pikesville, MD
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Lyn Sims
Schaumburg, IL
7,836,164
This will be a good blog topic for you.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Nina Hollander, Broker
Charlotte, NC
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Lyn Sims
Schaumburg, IL
-
Michael Jacobs
Pasadena, CA
1,844,301
I believe we discussed this last year & I guess it is happening again. We came up with a 30 to 35% fall out rate of contracts. Buyers & sellers just don't have the same mindset.
They don't keep stats on this stuff even though they should.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Nina Hollander, Broker
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Michael Jacobs
Pasadena, CA
-
Joseph Domino 480-390-...
Scottsdale, AZ
508,318
I think there are several reasons. As you said many go under contract because buyers are in a hurry and don't want to miss out. Sometimes they go under contract "sight unseen". Then when they get to examine the house they change their minds.
In other cases, there are inspection issues that scare the buyer off.
And often in a multiple offer situation, the buyers bid too high trying to get the contract only to find the property will not appraise for the offer price.
Sometimes the seller is better off accepting a lower offer if the buyer is better qualified and more serious.
We just had an offer accepted on a home and the Listing Agent confided in me afterward that they had a higher offer, but chose ours because they knew that the other offer had too many variables.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Nina Hollander, Broker
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Michael Jacobs
Pasadena, CA
1,955,212
The nature of a multiple offer means that buyers have to make a quick decision and many times they come to regret it. I can recall a time that a lot of the due diligence was done before an offer was made. Can't do that now.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Joseph Domino 480-390-...
Scottsdale, AZ
5,772,575
Praful,
You have excellent comments here, and I especially like Michael Jacobs.
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Margaret Rome Baltimor...
Pikesville, MD
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
5,230,113
This is exactly why I tell my seller clients NOT to ask for highest and best, Praful. Work with the best Offer and have one of the others as a back-up.
Buyers who 'win' are playing JUST to 'win'...and then, they sleep on it and wake up realizing they are paying FAR too much.
-
Margaret Rome Baltimor...
Pikesville, MD
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Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
2,684,109
What did they use for the "out"? The inspection contingency?
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
5,583,278
not typical.... it's often because of a surprise after a home inspection....
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
2,781,173
Greed...
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
3,345,091
Low appraisals would be my guess. And the sellers do not want to reduce the price to meet the appraisal.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
5,104,931
I think it's buyer's remorse... they made a decision to quickly and now are having second thoughts after the thrill of the hunt is gone.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
5,049,450
I suppose there are all sorts of reasons indlucing buyer's remorse and feeling they overpaid. I don't know the percentage of homes in our area that come back but it does not seem significant.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
4,434,127
3,071,489
577,750
I guess it wasn't the best offer after all!
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Bob "RealMan" Timm
Minot, ND
4,800,082
I can only guess that many of these offers are a bit premature and sellers are not doing their due diligence in vetting them.
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Bob "RealMan" Timm
Minot, ND
3,854,909
Praful Thakkar
Maybe they didn't pick the BEST offer from the RIGHT buyer.
Maybe the accepted offer was not negotiated with the seller's interest being most important.
As a listing agent, the buyer really wanted the house. The home was sold as is with inspections, waiving the appraisal contingency and a substantial EMD. When there is that much activity, the seller has a right to negotiate for the deal that is going to make it too closing.
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Bob "RealMan" Timm
Minot, ND
3,164,294
not seeing things come back on the market here.
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Bob "RealMan" Timm
Minot, ND
6,393,609
482,547
HI Praful Thakkar. We don't often "suffer" from multiple bids in my area, but as most others have said, inspection issues, 'cold feet', and low appraisals are most common reasons for homes returning to Active status. Then there are a few mortgage denials due to facts getting in the way after the pre-approvals, too.
Bruce
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Bob "RealMan" Timm
Minot, ND
247,699
First, inspection issues. Second, appraisal issues.
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Bob "RealMan" Timm
Minot, ND
2,390,620
Cold feet. Just like some engagements one party or both get the jitters and bolt Praful Thakkar .
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Margaret Rome Baltimor...
Pikesville, MD
679,404
I have not seen this alot, however, if it happens the main reasons would be:
Buyer's Remorse
A Home Inspection that disclosed damages the buyer was not willing to do
Appraisal issues
And like Michael Jacobs said, Stuff Happens
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Bob "RealMan" Timm
Minot, ND
1,712,676
2,182,552
5,868,554
We still see 25% of listings come back on the market, and some are from buyers writing on more than one home, and winning the bid. They have to get out of one (or more).
3,986,258
That is the downfall of taking the highest offer. The home may not appraise out and then the buyers can't get the loan!...Just one example
3,988,007
Multiple offers are risky for the sellers as they may pick the wrong one, get mislead and then have to start all over again.
1,502,998
Could be lender issues, inspection issues, buyer didn't bring in the EMD. I've seen it before. House sells again pretty quickly and often for more money. Doesn't bother me. :)
191,939