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 2 of 5 and part 1 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 second tip.
Start your house hunt lower than your top dollar! Ask any buyer who has ever fallen in love with a home and then had to compete for it: the temptation to blow your budget to win a bidding war for your “dream home” is extremely tough to resist.
One way to set yourself up for success is to house hunt in lower price ranges from the get go. This gives you the freedom to aggressively bid if you find a home you love – and even counteroffer – without overextending yourself. This might seem like obvious advice, but it’s advice that many buyers resist.
Avoid negotiation disappointment – get expert help Your agent should give you the information to help position an offer in your favor. An experienced agent has been through this process many times and will make recommendations to give you the best chance to get the home you desire. If the agent states that the market is a sellers market and in the area you are looking at homes are selling at list price or above you will only set yourself up for frustration thinking you can low ball offers and expect sellers to just roll over. Even with a cash offer don’t expect a seller to accept an extremely low offer because its cash. The seller is looking for the most part at what his net will be when they close.
Some think they should get as much house as they can possibly afford. And most buyers overestimate their negotiation skills, pinning their hopes on the idea that they’ll be able to bargain the home’s owner way down.
Working with a licensed real estate professional can help you establish a smart starting price range for your house hunt and negotiations by showing you a comparative analysis and data on list price-to-sale price ratios in your area.
We have not seen this scenario this year but If homes generally sell for 15 or 25% over the asking price, you can use that information to back into a price range that will set you up for successful bidding – and winning the listing, without breaking your bank..
I hope this update has been helpful! As always with a mortgage every situation is different so I always defer to our lending partners to give you specifics for your situation. If you have been thinking about buying or selling and would like more information, please feel free to contact me directly at 951-506-5744 or email at [email protected]. There will be a slide at the end of this video on ways to contact us.
