dhalsim2_IHB
New member
I started shopping for a five-bedroom home back in April. My wife and I fell in love with the first house that we saw, a foreclosure that was listed at $516k. We bid $480k, but got blown away by the frenzy of bidders. The winning bid was $560k and the bank didn't bother trying to counter us, but even if it had, we probably wouldn't have gone up much because it was the first house that we saw.
We have looked aggressively for three months for another good house, and although we found some good ones, we didn't find anything that we liked nearly as much as that first one. It had everything we wanted in a house, but it was also walking distance to relatives.
Now it's three months later and that house fell out of escrow. We immediately placed a very high bid that has put us in first place among the bidders. However, we aren't particularly comfortable with the amount that we bid. My real estate agent points out that it's all contingent on appraisal, so if the appraisal comes in lower, I can easily negotiate downwards. Both my mortgage broker and a friend who has also been in the market say that that's what a lot of people are doing--bidding insanely high, then negotiating afterward based on the appraisal contingency.
What do you guys think about this strategy? Have you heard of it before? Think there's a good chance of getting burned?
We have looked aggressively for three months for another good house, and although we found some good ones, we didn't find anything that we liked nearly as much as that first one. It had everything we wanted in a house, but it was also walking distance to relatives.
Now it's three months later and that house fell out of escrow. We immediately placed a very high bid that has put us in first place among the bidders. However, we aren't particularly comfortable with the amount that we bid. My real estate agent points out that it's all contingent on appraisal, so if the appraisal comes in lower, I can easily negotiate downwards. Both my mortgage broker and a friend who has also been in the market say that that's what a lot of people are doing--bidding insanely high, then negotiating afterward based on the appraisal contingency.
What do you guys think about this strategy? Have you heard of it before? Think there's a good chance of getting burned?