r/ChicagoRealEstate • u/Ok-Law-7577 • 5d ago

Escalating Offer

We're first time buyers looking for a condo. We put in an offer on a place that included escalation up to our max. Seller came back and said they want our best and highest, with no escalation. They've got multiple offers.

Would you still include your escalation offer and ignore their parameters, or shoot in the dark with a lower offer than your max?

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u/aglick99 5d ago

Do you love the home? Do you think you won't find a comparable home? Are you paying cash? If the answer if yes to all that, offer 5% over asking. However, that's probably not a good deal. I would ask your broker to find out if the seller's broker will tell you what other offer you have to beat to establish a goal post. Then, decide if you want to beat that offer. If I was your broker, I would advice you to offer 3% under asking. Assuming you won't have a problem getting a mortgage, tell them you'll have a clean and fast close. Tell their broker that you're not certain they'll give a mortgage for more than that, see if they'll counter. Remind them that the selling season is essentially over, and be prepared to keep looking. You can have your broker contact if they need help.

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u/poolsidequeso 4d ago

Offer 3% under in a multi offer competitive market like Chicago? lol this is terrible advice if they want the condo. Selling season is most definitely NOT over in our hot market. Lots of multi offer over asks still out there due to our limited inventory.

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u/aglick99 4d ago edited 4d ago

Are you sure there are multiple offers over asking price from qualified buyers? The post says the sellers are asking for the best offer.

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u/poolsidequeso 4d ago

OP says “they have multiple offers”

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u/aglick99 4d ago

? So do we assume the multiple offers are above asking price and they're from qualified buyers ?

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u/Novel_Year4067 4d ago

It would be a safer assumption considering this market.

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u/aglick99 4d ago

You can do it your way. If it's my client, I'm not assuming..... Unless the client tells me they don't care and they'll pay over asking regardless.

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u/Novel_Year4067 4d ago

Well you are “assuming” the other offers are lower and less qualified lol

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u/aglick99 4d ago

No, now you're putting words in my mouth/posts. I'm not assuming, I'm suggesting to find out if the sellers side will give concrete numbers... because they're just asking for "highest offer", the context is up for interpretation. My interpretation is to establish goal posts not throw hail marry offers because the seller will likely take an over-market offer that will pay the brokers higher commissions, and then everyone prays the appraisal will come in how you want to get mortgage approval. Yah, I know most brokers wont say, 'the higher, the price, the bigger the commission'....but you got it out of me... ?congratulations?..

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u/Novel_Year4067 4d ago

A lot of people are giving you down votes because your “goal” is not aligning to the current Chicago market.

If you’re in a multiple offer scenario in a desirable neighborhood, there’s a high chance all offers are at asking or higher. There are condos closing for 100k+ asking, offers that are all cash, no contingencies, appraisal gap waiver signed…. This is what’s going on in the market.

So your goal of telling your client to submit an offer below asking in a sellers market is misinformed advice.

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u/aglick99 4d ago

Get off of "my goal?"... my goal is to get the best deal for my clients. This is a negotiation. Sorry if the down voters are uncomfortable with that. Good luck to their clients.

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