I was working with a client for several months who was buying in Nicholasville. The market there is even worse than it is in Lexington for a sub $200k buyer since there are only about 8 neighborhoods to choose from.
A great house came on the market. I scheduled a showing.
I just knew this would be the one. I checked out the recent sales in the neighborhood to get an idea about what this house was worth. I even prepared all the docs my buyer would need to sign so we would be ready to go. All I needed to do was fill in the offer price and have her sign it from her phone.
We looked at the house. It was a winner. I call to tell the listing agent that I just sent an offer and was told that there was already one offer on the table and another one was coming.
We revised our offer to be slightly over the list price. I asked all my usual questions that can help with getting an offer accepted……When would the seller like to close? Do they need delayed possession? Would they like the inspection type where the buyer either takes it or leaves it after the inspection? Other than price, what would the seller’s ideal offer be?
The seller didn’t need anything special, so I knew this one would come down just to price.
A few hours later I get a call telling me that the third offer arrived and it had an escalation clause. That made me pretty nervous.
I tell my buyer this and suggest we also do an escalation clause. I tell her that the default setting for most agents is to offer $1000 more than the highest offer, so we better do more. Otherwise all we would accomplish was knocking out the third buyer.
She agreed to a number we discussed and that she would pay that much higher than any offer up to certain price. The list price was $192,900 and all the offers were higher than that.
I was a nervous wreck all day. I really wanted to see my buyer get this house. It was perfect for her and she had been waiting so long to get a house.
Finally, I get the call that she won the house. Turns out all the offers were $194k, and the other offeror’s escalation clause was the predictable $1000 that I suspected.
It was sort of funny for me because it was the first time I had ever called to tell a buyer they had just bought a house and they didn’t yet know what they were paying for it. I tried to make her guess, you know, like she was a contestant on The Price is Right, but she was so anxious that she said “JUST TELL ME THE PRICE!!”