Did you hear about the condo that had 37 offers last Tuesday or the Single Family home with 18? Are you a weary buyer who found the right home after a long search only to lose it in a multiple bid situation or a bidding war? And then the cycle repeated itself the following weekend!
There is a good reason for what is going on in some of the coveted areas of our fair city – low inventory! Priorities such as great schools, commute times, access, community, diversity, green-spaces and views – may all play their part on why buyers seem to converge on certain suburbs or areas of downtown Boston
This article is on how to get your groove on and win in a competitive situation. Remember if you lost to an all cash offer that was way over asking while you absolutely needed a mortgage – this house was not going to be won by you no matter what. However, not all homes are in that situation – here are some tips to get ahead when you are in a close competition:
- Know what is important to the seller: find out all you can with regard to what is important to the seller and then use it to your advantage. It is not always the price. It could be a particular close date or need for flexibility to deal with a family situation.
- Learn all you can about the transaction process: have your Realtor ask the Seller’s Realtor about the process they will be using in a multiple offer situation. That way you will know how best to craft your first offer and any second chance – if you get it – for a best and final. Also ask if the seller is open to escalation clauses, so you know what you are up against.
- Know your market: real estate is indeed local. The best way to know what is going on is to have a good understanding of the trends in the area you are buying in. Get a good Realtor and then listen to what they say. In my experience, no matter how much you are told about the market it is important to experience a hot market for yourself. It may take a couple of rejected offers– till you get what’s going on.
- Do not get fixated on the asking price: use it as a suggestion. View many homes at Open Houses in your chosen area so you can come up with your own realistic formula for what a particular house is really worth and what you are willing to pay for it – then don’t be tentative when making your offer. Give it your best. A few thousand dollars is not going to make a difference in the end since you are planning to live in the home for a few years. However, knowing what you can comfortably afford and knowing your top price is important – so you do not end up in a bad situation or with buyer’s remorse.
- Act quickly and aggressively: if possible, take a look at the house as soon as it is on the market (before the public open houses). If you like what you see, act quickly and make an aggressive offer that expires in 24 hours.
- Think hard about every additional contingency you add to the offer – and if you really need to: if you feel uncomfortable making an offer without a home inspection (which is understandable) – ask if you can have a pre-inspection. So you know what you are up against before hand and can make an offer ‘contingency free’ or with only a mortgage contingency, as needed.
- Be patient: you will learn the ropes and eventually find the home that is right for you. Almost everyone does!
- Give me a call J: perhaps the most important thing you can do for your peace of mind in this competitive seller’s market whether you are a frustrated buyer (or a seller excited about the prospect of receiving multiple offers on your home) is to get a good Realtor on your side. I will guide you throughout the process from the search to close, answer your questions, run comparative market analysis on properties that are similar and negotiate on your behalf.
As always, I would love to help you and your friends with your real estate needs (be it buying or selling), answering your questions – and doing a free comparative market analysis and valuation on your home. So do not hesitate to call or reach out.
Spring should definitely be around the corner at this point…!