Again with our real estate market here still being a sellers market especially with lower price points we are getting more and more scenarios where we are competing with our buyer looking to purchase a home and competing against multiple offers. Even at higher price points if the home is really nice and priced to sell we can see multiple offers. So how can we prepare our buyers to not only survive but win out in a multiple offer situation. This is part 3 of 5 and part 1 and 2 can be seen at TemeculaRealEstateJournal.com or my YouTube channel.
Making a winning offer is more art then science. We have five different strategies for surviving a multiple offer situation to get you the results you’re ultimately looking for: The house you want, at a price you can afford. So here we go with the third tip.
Save by offering more than the asking price
Offering more money may seem like an obvious way to beat out other offers, but you would be amazed at how many bargain-seeking, recession-trained, and novice buyers simply don’t do it. Many think they’re scoring a deal by making low offers, even in the face of competition.
However, if you lose out on five homes before coming to terms with the reality of lowball-offer strategies, you also end up facing:
• more competition for fewer homes
• higher prices
• the enormous cost of hunting for other properties
In a serious seller’s market, the end result will often mean spending more to score a property.
the key to success: get market-smart and yes my job is to help you get that home so in certain circumstances it may take offering more then list price. We do take into consideration what the home would appraise for as the appraiser does have final say on value if there is a loan involved. You might at this point have to put more down if the appraised value is less then the purchase price. You can still do this and get the house. You might also back out of the transaction at this point if you think it dosen’t make sense.
If you find the thought of offering more than the list price exasperating, try to keep things in perspective. Know that today’s smart sellers are both strategic and assertive, listing low to create an auction atmosphere and churn up multiple offers.
Don’t be duped into thinking you can get away with a low offer because the asking price seems like such a bargain. (And by the same token, don’t throw money at a place that is overpriced compared with the rest of the market.)
The victorious buyers are those who are making offers backed by the home’s fair market value, as determined by the neighborhood’s most recent sales – not sales from even a few months ago.. an appraiser will only go back 6 months to find comparable sales. I hope this update has been helpful!
