Multiple Offers Are Here – Real Estate Answers
Since around the February 2012 thaw, buyers’ confidence appears to have increased and the housing market has been heating up. This coupled with very low inventory of homes for sale has produced a hot market for sellers. Listings that are priced reasonably and are in relative good condition are seeing multiple offers. Homes that are turn key such as investor flips or equity sales have had over 60 offers.
So what is a buyer to do? It has been my experience that when it is meant to be it will happen, However it is important that when opportunity knocks you are ready to open the door. Start shopping for a home now search the internet work with a agent to start touring homes so you become familiar with the market and are prepared to offer market value , or slightly higher , when the right home for you comes on the market. I highly recommend working with a buyer’s agent to fully represent your best interests.
My advice on value is to not get too focused on the listing price. Unlike a retail store the asking price is not always representative of the value of the home or even what price the owner is necessarily looking for. This may apply to bank owned, short sale and even investor flips which may be under priced possibly to garner multiple offers and drive the price up through a “bidding war”. However they can also be overpriced for a variety of reasons. I have also seen the use of marketing auctions on occasion whereby the home is listed at very low starting price to generate interest however they traditionally have a reserve price which is secret minimum price that needs to be met by the bidders before the seller is obligated to accept an offer. This reserve price is usually at or above fair market value.
So what is a buyer to do? First of all do not give up hope, next keep watch and when a home that fits your needs becomes available jump on it! Make an offer based on the value of the home to you. Focus on your needs and remember prices are at historic lows so the potential for equity in the long run is great. If you look at a few thousand dollars difference over 30 years it may put it in perspective. Keep your offer clean, consider making the offer “as-is”, this does not mean you waive your rights of inspections it simply represents that you do not expect the seller to perform any repairs which make your offer more desirable that one that may ask for repairs. In my experience when it is meant to be it will happen.
Call a today to get started. As always feel free to contact me for more information.
Patrick McCarran can be reached at (899) 899-5536 or www.PatrickMcCarran.com. Prudential California Realty is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc. The Prudential Real Estate Affiliates, Inc. is a Prudential company. Equal Housing Opportunity.