Resulting rising home prices have been consistent for most residential real estate markets during the last 10 months as cited by Real Estate Trends Magazine August 2012 issue…increasing rents, low foreclosure inventory, still historic low interest rates, and this new buyer awareness/frustration has increased unit sales and most recently sales prices. Motivated investors and first time home buyers are still greatly influencing what I call “multiple offer situation” market, defined as when buyers are competing with other buyers in a market with limited inventory. All this during a time when the real estate recession is termed “over” by most financial gurus. Now what do you do when you are found in a situation where you are buying the most affordable home at the most affordable price at the highest price..thereby outbidding other buyers??? How do you get the winning bid without losing your head or your wallet during the process?
First, make a prompt decision. Be savvy about making your offer.
- Market Value
- Evaluate rehab/repair/holding costs accurately
- Offer place your HIGHEST and BEST offer FIRST…don’t wait until other buyers step in and bring up the seller standards
Please don’t wait until they call highest and best…they most probably will, especially for well priced homes. Use your realtor to understand your buying power, real estate trend, and current market value.
Second, include a large earnest money deposit…the amount of earnest money provided in the offer may help establish greater validity and or credibility vs other buyers… if you are ready, willing and able..prove it!!.
Third, try to establish short inspection and appraisal contingencies. To the seller, timing is of great consideration. They want quick closings!!
A final word of advice to all my frustrated buyers…”Patience is a Virtue.” Please understand that this is, I believe, our first “multiple offer market” in US history…so stay adamant about your purchase, stay informed, be proactive, and trust your agent. You are still buying in a “foreclosure priced market” and the opportunity still remains for all the reasons I hereby described….don’t get carried away with all the outbidding. Use all the tools and resources available to make an assertive decision, be prompt and be aware!!
Virtual Properties Realty