We love working with first time Home Buyers - their excitement is contagious and it's refreshing to see things from a new perspective. But oftentimes we run into a dilemma - our Buyer, lets call him Joe, has just started looking and sees a great place that has been on the market for a heartbeat.
Joe is interested in the property, so we go back to the office and look at comparables. After some discussion, Joe decides to put in an offer 10% below asking price - after all, this is a Buyers Market and all his friends have told him this is the way to go. Unfortunately, the comparables support the asking price.
Meanwhile, other Buyers are out there looking for similar properties, and they know a good deal when they see it. So we end up in a multiple offer situation. Now the hard part!
We advise Joe - "you will need to go at least to the asking price."
Joe says - "what? In a Buyer's market? I can't go to asking and overpay for the property!"
How do we get our Buyer to understand that if they want to win the property, they will need to go higher without seeming to be the greedy Realtors? If they lose the property to another Buyer, they usually go into a mourning period over the loss. But if they do go higher and win the property, they think they overpaid. Thus the dilemma - we're damned if we do and damned if we don't!