Re:Oracle Moving HQ to Austin
by monocasa on Friday December 11, 2020 @05:19PM
(#25392162)
At least in Denver, it's common to see Californians come in and for the first offer drop down 20% over asking. No bidding war. They want to guarantee they get the house _without_ having to deal with a bidding war, and have enough savings that the marginal cost of each of those dollars is less than those living and working in Denver.
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Re:Oracle Moving HQ to Austin
by lotsofpulp on Friday December 11, 2020 @05:23PM
(#25392219)
The extra 20% is the bidding war. If they thought there was a reasonable chance they would be able to purchase without the 20%, they would.
The term "bidding war" doesn't typically apply to initial offers.
Re:Oracle Moving HQ to Austin
by lotsofpulp on Friday December 11, 2020 @05:34PM
(#25392392)
The concept of bidding war includes having to pay more than someone else to obtain something. If a market is so hot that the seller has no reason to even wait for competing offers, then the initial offer has to be high enough to make it worth their while. The initial is your bid, and because you predict other buyers will be able to satisfy the seller's demands, you bid defensively by bidding extra.
A single shot isn't a war.
Re:Oracle Moving HQ to Austin
by lostcolony on Saturday December 12, 2020 @12:46AM
(#25395912)
A single shot that decides the outcome is an assassination, and that's generally done to avoid a war that will have worse outcomes, if we want to stretch this metaphor to the breaking point.
Re:Oracle Moving HQ to Austin
by throwaway201103 on Friday December 11, 2020 @11:34PM
(#25395589)
As a seller if I got an opening offer 20% over my ask, I'd counter at 40%. Might as well take while the taking is good.