The Florida Association of Realtors published an article recently about the bidding wars that we have seen on some low priced homes in the Florida market. It is an interesting phenomenon - many people expect to be able to get homes at far less than the asking price, but we are now seeing cases of homes selling for MORE than the asking price.
In this kind of economy, that is certainly not what you'd expect! But there are underlying reasons behind this situation. These "bidding wars" are not breaking out on every property - in fact, the reason this is happening is because these properties are a rarity. In a market filled with foreclosures and short sale properties, many in disrepair and banks taking months to even respond to offers, a home in good shape with a standard sale procedure in a good area is a hot commodity. The old rules are still in play - location, location, location - with a new twist: priced right, priced right, priced right!
So how can you get that perfect property? First off, it is important to act quickly. Offers will be coming in rapidly, and you want to be sure to get yours in and have a chance to respond to other offers if necessary.
Second, cash offers are greatly preferred at the moment. If you can place a cash offer, you may be able to beat out some higher offers that require financing and waiting time for the seller.
Finally, have representation! An exclusive buyer's agent can help you structure your offer to be most attractive while ensuring that you are still protected. We offer advice and opinions based on our past experience in these kinds of situations. We can help you control the emotion of the situation - and warn you if you are overpaying.