A Bird in the Hand?

Those of you who are regular readers of my blog know that a month ago my wife and I moved out of our San Francisco home and into a new home in an East Bay suburb. And you may also know that we bought our East Bay home before selling our San Francisco home by taking out a bridge loan. The sooner we sell our San Francisco home, the sooner we can pay off the bridge loan and stop incurring the carrying costs on our old home.

The good news is that there’s been a lot of interest in our San Francisco home. Our realtor had set tomorrow morning at 9 am as the deadline to receive offers on that property and she is expecting from six to ten competitive offers.

But yesterday morning, she sent us an email telling us that we had received a surprise, “preemptive” offer. She wrote,

Good morning! An agent sent in an offer (terms are above asking, all cash, all contingencies waved, and a quick closing). They know we have an offer date Wednesday morning. Likely her client does not want to have to compete against others in what will be a competitive situation.

Are you fucking kidding me? Over asking price! All cash offer! No contingencies! Quick closing date! It doesn’t get any better than that, does it?

And then our realtor wrote,

It’s in your best interest to do as we discussed and honor the offer date for the other agents. You will definitely have multiple offers to choose from and can negotiate with the highest competing offers to get more. Though this offer is strong, if the buyers are serious about your home, they will resubmit their offer on Wednesday at 9.

Yikes. All I could think of was my Fandango’s February Expressions prompt from last Friday, which was, “A bird in the hand is worth two in the bush.”A54E39A6-30B7-43E0-B083-A921AC11EA07Should we jump on this really strong offer (the bird in the hand)? Or should we, as our realtor suggested, take a chance and wait until tomorrow morning to see if any better offers (birds in the bush) come in? We have until 1 pm Pacific time today to decide.

Yeah, I know. This is a really good problem to have, right? But I’m agonizing over what to do. If we wait, and the people who made this amazing offer pull out and a better offer doesn’t materialize, I’ll be kicking myself for not having jumped on the bird in hand. But would we be making a costly error if we do accept the “preemptive” offer when other, even stronger offers might come in from the proverbial birds in the bush if we wait until the prescribed offer date and time? Gah!

What would you do?

29 thoughts on “A Bird in the Hand?

  1. aguycalledbloke March 3, 2020 / 5:50 am

    Wow good position for you and the potential sale of the house. Do you trust your estate agent [realtor?] What’s the state of the house market in America at present? Is the economy supportive the offer in? Are they likely to pull out? Could they be gazumped? Are they first time house buyers or are they in a chain?

    If they really want it – they REALLY want it anyway – so can they not wait till the 9th? If l was you and l am obviously not – but if l was – l would ride out the remaining time till the 9th.

    Good luck with whichever decision you make.

    Liked by 1 person

    • Fandango March 3, 2020 / 6:26 am

      The housing market in San Francisco is crazy. The inventory of available homes is low and the demand is high, so the basic economic laws of supply and demand take hold, raising prices. Ours is a very nice home near Golden Gate Park, so I’m not surprised that there is a strong interest. I do trust our realtor, so I’m probably going to wait. And it’s only one day — tomorrow, the 4th, not the 9th.

      Liked by 1 person

  2. Liz March 3, 2020 / 5:52 am

    A very hard decision. I’d be torn deciding.

    Liked by 1 person

  3. Ruth March 3, 2020 / 7:48 am

    I’m a firm believer in ‘If in doubt, do nowt’ 🙂

    Liked by 1 person

  4. Melanie B Cee March 3, 2020 / 8:15 am

    I’d take the offer. If it’s a good one (and above asking is always good). There’s always “well hell if I’d just waited..” moments in anything we have to decide, and only you know your own mind and preferences, but the bird in the hand is called that for good reason. You’ve GOT that bird, those other birds are still free to fly away home.

    Liked by 1 person

  5. rugby843 March 3, 2020 / 8:39 am

    All cash offer? Weird, I’d take it after I have it in hand.

    Sent from my iPad

    >

    Liked by 1 person

  6. Stroke Survivor UK March 3, 2020 / 9:38 am

    I’d wait. Let the bids come in. Imagine how unfair you’d think the process was if somebody put their house up for sale, you bid on it, and your bid wasn’t even considered. Okay, not ur problem, I know, but…
    (i) if these people are sufficiently interested that they make you a pre-emptive offer, they are hardly likely to lose intrst betwn now and when the bidding finishes, and
    (ii) if your realtor is correct you’ll get oveer-the-asking-price anyway.
    But, you know, you got 16. Do you stick or twist?

    Liked by 1 person

    • Fandango March 3, 2020 / 1:14 pm

      I’m gonna stick and wait to see what happens tomorrow. Hopefully I won’t regret it.

      Liked by 1 person

  7. pensitivity101 March 3, 2020 / 10:06 am

    I’d honour the deadline with other agents. If something sounds too good to be true it usually is and all that. If this is a genuine offer, they will submit theirs with the rest and you can take it from there. Even if they don’t, you will still have other to chose from and warrant a sale. Last thing you want is to go with this high offer only to find a short way down the line they don’t deliver and you are left paying costs of your bridging loan with no buyer and having to start again with a ‘wary’ market. Just my opinion……….

    Liked by 1 person

  8. slmret March 3, 2020 / 10:08 am

    Can the pre-emptive offer not be considered with the others tomorrow?

    Liked by 1 person

    • Fandango March 3, 2020 / 1:19 pm

      Only if they resubmit it because I had until 1:00 today to accept it and it’s 1:20 now.

      Like

  9. kajmeister March 3, 2020 / 6:43 pm

    You engaged the expert (realtor) for a reason. Let them do their job advising you.

    Liked by 1 person

    • Fandango March 3, 2020 / 10:32 pm

      Well, in about 12 hours I will find out if the expert gave me the right advice.

      Like

  10. Marleen March 4, 2020 / 1:39 pm

    I can hardly wait to find out how things are going.

    Liked by 1 person

  11. leigha66 March 6, 2020 / 2:08 pm

    I look forward to finding out more about this as I make my way through your posts. Oh I hope your got a great buyer with a big check!

    Liked by 1 person

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