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2012-07-09 11:38:10
Buyers and Multiple Offers in Real Estate

Most people today are shocked when they ask, 'How's the Real Estate Market these days?' and my response is, 'It's crazy!  13 of my last 15 offers which were all at or above asking price we were outbid on!'.

I guess it's understandable.  Everybody hears how down the economy is and it doesn't make sense that there are bidding wars going on over real estate.  What happened to a depressed market?  Don't worry! For all you doom and gloomers, it's still out there.  What's happening is that there are LOTS of short sales, a few bank owned homes and very few regular seller owned homes on the market.  We call this a 'low inventory'.  Serious buyers that don't want to wait for 6 months to never for a short sale to come through for them are all fighting over the remaining few homes on the market.  I ran a search a couple weeks ago that yielded over 90 homes that matched our criteria.  Then I realized I had accidentally included short sales, so I blocked all those.  We were left with around 14 homes!

So, if you're a buyer and find yourself in a bidding war, how should you proceed?  First of all, you need a good real estate agent....and YES, I am saying that because I am one!  The bottom line is that if you don't have all the info, you're going to lose.  It's that simple.  A buyer with a good agent with beat a buyer without any day of the week.  (My humble opinion and loads of experience).  

A good agent can do several things for you.  First, they can help you find the home the first day on the market.  If there's a bidding war, it's happening early.  You need to be there early. Finding it by happenstance 3-4 days after it hits the market keeps you out of the game because you're already too late.  Second, they can help you know how much to offer.  Many people are still thinking 'bargain shopping'.  That works if you're in the million dollar range, but dip under 200k and it's shark infested waters.  Your agent can help you know what the average home values are and help you know at what point your bid would be too high.  Having this knowledge up front can really help ease the frustration of being outbid.  You know at that point that the other guy paid too much!  You're glad it isn't you!  Third, an agent can help you keep your head in the game. It's depressing when you're beat in a bid for a home you really like.  There are other homes out there, and you agent can help to keep you from sliding into the doldrums and giving up on the process.  With rates and home prices as good as they are, that's the last thing you'd want to do!

So, hang in there, don't give up, and remember that the deal of a lifetime comes along every other week in real estate!

 

 
Blog Archive
2012-07-09 11:38:10
Buyers and Multiple Offers in Real Estate

2012-04-02 10:14:02
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