Why Would I Bid OVER The Listing Price?!?
We're standing in the middle of a house. The listing price was $132.000. There was already a "bid" on the property at $135,000. I told the potential buyers that it would probably go for $145,000 or MORE! They thought I was nuts!
Let's back up a little.
When we pulled up, the outside was beautiful. No cracks in the driveway, bushes and trees were trimmed nicely and there wasn't anything cluttering up the yard.
Then we went inside.
Something was missing.
Yes, the kitchen was gone.
So were the bathrooms and the hot water tank.
Even all the light fixtures were gone!
Buyers said, "It's not worth even $100,000!" I responded with, "actually, it is. Besides the fact that someone already bid $135,00 on it, a "finished" house in the neighborhood would be worth about $220,000. So, if it were to be purchased around $150,000 and put back together, it would be a steal."
They understood, but couldn't put an offer in on this house. They were qualified for an FHA loan, but FHA won't allow a purchase of a house in this condition.
Sometimes you DO have to offer Over the asking price.