Broker creat a bidding war!

What's going on is that there is an extreme shortage of quality inventory compared with the number of buyers who want to buy it.

There is also a significant time lag between an accepted offer and a contract signed by all parties. Many agents do not report accepted offers in the database that Manhattan brokers use, they only report signed contracts. There are good reasons for this practice, starting with the fact that accepted offers get withdrawn fairly often, and the buyer is the master of the offer. But it leaves the wrong impression.

Agents are being told by their bosses that highest and best is the way to handle things when you have 23 people bidding on one apartment--which happened to us last month when we were trying to buy. (We decided to rent instead, very happy now)

It's not a trick. I believe agents rarely lie about this stuff, and I'm an agent. But many agents handle this whole mess so poorly that the consumer gets the impression that something sneaky is going on. It's too bad firms don't train agents on exactly how to handle this event with grace. It can be done, and the best agents do so.

By the way, my mathematician husband informs me that the "highest and best" process agents are using is NOT the best way to get the highest price for the seller. This is the kind of thing he is very familiar with. So, as a buyer you have a chance of spending less than you could or would, in a highest and best scenario, and therefore it's actually good news for you.

The best way to maximize the seller's price is the more traditional way of offers and counter offers, and pitting buyers against each other. But it's more time consuming and difficult for the agent, imagine doing that with 23 buyers, you'd need a spreadsheet, so that's why I think agents are choosing the highest and best method.

When your bid is so obviously out of the running, many agents just ignore you. Out of the running in this market sometimes means a full ask offer with a mortgage contingency, as many offers are over the asking price with all cash. This hurts buyers' feelings, is rude and unprofessional, and creates ill will toward the firm. obviously the buyer thought they put in a good offer.

But agents should never ignore anyone who bids, each person should receive a personal response of courtesy and kindness; this is the right thing to do and in the agent's best interests. but unfortunately this is not what is occurring. Apparently agents feel there's no need to build good will for the future because we're in a new permanent world where everything sells in 3 days. ha ha ha.

All markets evebtually correct and achieve relative balance, unless they
completely collapse

I dont see what the problem is with submitting your best offer right away when you know there are other bidders. If it goes above what you are willing to pay, then you lost nothing.

as far as brokers using tricks, if you feel deceived or have a bad vibe about the deal, walk away from it.

also, if you still want that apartment that still looks available, contact the broker and see if they will still consider your bid. Many times the highest offer isnt the most qualified, or it just simply fell apart.

askwangd
about 6 hours ago
Posts: 22
Member since: Feb 2010
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Two brokers using the same tricks to get your final and best offer,one told me that you are not the highest,I am the loser in their bidding war.but that property wasn't sold yet ,even not in contract!
Another broker did the same way,got your offer,and no answer..BOTH Brokers from the same company"Brown Harris Stevens"
Anyone knows what is going on?

do you mean to say that the agents are using negotiating tactics to increase potential profit for their clients? how dare they....

Borker creates bidding war! Now that's better.

It's like asking why water feels wet? Cause borkers are third rate jobs for fourth rate careers of has been giver uppers.

And that's a fact, Jack.

>do you mean to say that the agents are using negotiating tactics to increase potential profit for their clients? how dare they....

Jim Hores, what is your favorite negotiating tactic?

I had the same question about the same company.
I bid on two properties, and was given the same exact answer from both,
"we have a cash offer and you will have to give us your best and final offer"
Then they both asked me to increase my offer incrementally, until I finally said no thank you to both...
They both contacted me a few days later to get back in, at a lower price.
This is my first foray into ny RE, it doesn't lack in excitement!