This is becoming a common theme in the Plainfield real estate market--in particular among bank owned properties. On three occasions this week I had to cancel showing appointments with two different buyers because the homes they wanted to see were either already in a bidding war or had an accepted contract. One property was listed on Friday and had eight, yes EIGHT contracts on it by Sunday afternoon. This local market hasn't seen that type of activity since 2005.
One of my disappointed buyers is fairly new to the game and has learned quickly that if he sees a property he wants that he better be prepared to RUN--which in this case means be ready to write an offer.
It means have the pre-approval letter or proof of funds statement at the ready.
It means be prepared to quickly decide how much you want to pay for the home because list price isn't going to get it done.
It means work with a professional who knows the local market and will provide documentation of comparable sales over the last three months so you can make an informed decision vs. an emotional one. During a bidding war, some people get so caught up in the idea of winning that they lose sight of the original goal: getting the right house for the best price!*
It means if you as the buyer really want this house, be prepared to make your move now. Time truly is of the essence. Many buyers believe that because the market is slower the house will still be there. In many cases that is true, but in the case of bank owned properties in the Plainfield, IL area, not so much. These homes are starting to be offered at fire sale prices. RUN!
*At the risk of sounding contrary, I better clarify this: it's true that during a multiple offer situation a buyer may very likely need to offer above asking price to have a shot at the home. That, compared to my statement of "getting the right house for the best price" is not purposely a contradiction. Paying above list price does not necessarily mean a buyer isn't getting a great deal--especially if the listing price is tens of thousands of dollars under market value. It means don't let your emotions get the best of you and pay above what is fair market value just for the sake of winning.
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