to bid or not to bid... multiple offers

Believe it or not, we are back in the days of multiple offers!  The current real estate market has picked up significantly!  Low interest rates and low inventory has fueled a small inferno around well priced homes.  Holidays are approaching and many people are NOT putting their homes on the market just yet.  Sellers many times wait until the spring.  Unfortunately, many have been trained to think that spring time is the best time to market a home.  Most sellers link it to the new school year and feel that they will receive the most buyers at that time.  Well- that is PARTIALLY true.  Yes- ther are many buyers that jump into the market during the spring time- but there are also many new homes for sale that compete as well. However, putting a home on the market in December will give less competition and your results will be the same! 

Let's look at the current inventory in our market area. Unfortunately, inventory is sparse...  the "good stuff" goes and it goes quickly.  Let's take an example.  A wonderful home in Verona was recently marketed.  WIthin 5 days of it hiting the market, it had NINE, yes, NINE offers!  Why??  Great location, great condition and well priced.  Some buyers get nervous and say they don't want to be in the midst of multiple offers.  But I question , why?  They need a home, right? They like that one, right?  Then why not bid??  To not bid gives them a ZERO percent chance at securing the home.  SO what I advise them to do is this.  PRETEND no one else is involved.  I ask them, HOW BADLY DO YOU WANT THIS HOUSE??  It is highly doubtful that we will be able to "negotiate" the offer...so put your best foot forward.  Youget one shot and one shot only. At what price will you be happy to acquire the home without feeling like you over paid?  Hmmm....   I ask them to play a mind game ...  If you were to bid X amount, and then DIDN'T get the home, would you say, I should have come up...  If the answer is YES- then bid more.  Then ask your self the SAME question, same answer?  Come up more. When the answer becomes NO- that's all I am willing to do, the ceiling has been reached.  Then, step back.  Ask yourself, if I pay this and find out that the next lowest bid was $5,000 less, would I be distraught as if too much was paid?  If the answer is YES, then bring the price down a bit...until you find that balance.  From there, sit back and await the seller's decision.  Don't look back- just wait.  Let the chips fall as they may.  If the house is secured- GREAT!  You reached your goal!  If not, then it meant more to someone else and move on.  Don't look back- just wait for the next home to hit the market!

I may have over simplified it- but one thing I know for sure is that I, as the agent, can't tell you what to bid.  I can give you an idea of how much it will sell for- approximately- but then again... I don 't know what the other buyer's are thinking.  Many think- what's $5,000 more over 30 years.  It's not easy- but don't be afraid.  One thing for sure- you gotta be in it to win it!  So backing off won't do the trick.. Raise your sleeves, put on your thinking cap, and GO FOR IT!  Don't be intimidated by multiple bids!

Lauren Orsini

Lauren Orsini

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