Then, a hiccup occurred.
You can put yourself in the Buyer #1 and Buyer #2 shoes as well as the owner's ,and come to your own conclusion. When you do that, don't leave out the part where Buyer #1 has spent a few thousand dollars on inspections and been told that their offer has been accepted. The above process surely didn't show Greenwich to it's best advantage and sure made it look like money trumps all else.
Fast forward to yesterday. My buyers found another property that they like. It has an offer on it already (do we have a knack for this multiple bid thing, or what?). Here's how this seller's realtor is proposing to handle it. Highest and best offers will be submitted to the seller's attorney. I like this. It feels fair and impartial. I am particularly impressed with this realtor in that the other offer is from within her brokerage. Thank you Ms. Realtor for showing my buyers what I think of as the "real" Greenwich and it's people.
For buyers who find themselves in this uncomfortable situation, I'd offer the following:
1. Determine Your "I won't feel bad to have lost the house" Bottom Line Price: Ask yourself at what price would you be okay knowing you lost the house. Will that extra jump or two really make the difference six months or one year down the line or will the time it takes to find another property that you like result in higher market prices since we are in an appreciating market?
2. Understand How the Property Sits, Value-wise, in the Current Market: Look at 3 and 6 months comparable sales in terms of location, square footage, lot size, amenities, condition, style of house, layout of floor plan and construction quality.
3. Don't Underestimate What You Will Need to Spend if Renovation or Updates are Needed: If this is a property that is going to take some work to get it to the place that you need it to be, be sure that a builder or professional looks at it and gives you a sense of what this will cost.