Didn’t We Learn From Anything From Over Bidding On Homes?

Not sure about what’s happening in other parts of the country, but in Tucson, lately it seems a property comes on the market and before it is placed in MLS, it’s under contract, the remarks say “multiple offers already” or , “we have several offers – many well over the ask price – so make your even higher.”

I do believe it’s a tactic for banks, short sell listing agents and even regular sellers to list low in order to create a bidding frenzy among buyers with the ultimate goal - secure a higher price for the home - and in many cases - prices higher than market value. 

And here’s why I tell my buyers to think things through and not get caught up in the “highest and best” frenzy:

• Didn’t anyone learn anything from years ago – over priced homes, bidding wars, selling homes that are worth half their value now?  It’s what created the home crisis we are in right now.   Same game – just different values.
• Highest and best only stirs up emotions in buyers – leading buyers to forget what their bottom line is and spending more than they want or should spend. 
• Let’s say you go through with the game, and your offer is accepted, you better read that bank contract – because if the home doesn’t appraise at the purchase price – no longer are the banks or sellers going to offset the difference – clauses in contracts are making buyers responsible for paying the difference.

Best advice to buyers SLOW DOWN – homes come on the market every day! Don’t get caught up in the game and don’t let your Realtor convince you to buy more than you can afford.  You will find a home you love, you will be able to offer and negotiate fairly.  You will be able to keep the home within your price range and budget – which is and should always be the focus for you and the Realtor you are working with. 

A good agent will be able to guide you on fair offering price, market value and help you decide if can or even if you are eligible to play this game.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

                                     

This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2011. If you want to reprint parts of this - just email me for my permission: TucsonsRealEstate@gmail.com.