Buyer's losing out on homes due to higher offers

By
Mortgage and Lending with Bay to Bay Lending

It is a sad day when a home buyer loses out on a home by being outbid by another homebuyer.  Often times by only $500-$1,000; it then takes them weeks to locate another home and once again the homebuyer will start placing low-ball bids putting themselves in another position to lose out on a great real estate investment.  Often times in this real estate market, the person who gets the property, is the person who offers a full priced offer or sometimes above asking price.  It is the way we all think; to want to pay less than the asking price for something regardless of what we feel the property may be worth.  I will sometimes watch clients and buyer's agents spend months placing low-ball bids to eventually see the evolution of a buyer's buying strategy change.  It is often the clients who were making offers at 75% of list price/fair market value who end up buying the home that they make a full priced offer on 6-9 months into the homebuying process. In the recent past I can recall countless clients who missed out on the government's $8K tax credit because of haggling over $500 or $1,000 in closing costs.  I have seen several clients regret their decisions to the point that they have told me that they should have listened to their real estate agent or they should have listened to someone else about making a full priced offer or an offer in line with what the property is worth rather than making low-ball offers waiting to find a desperate seller.  The key in this process it to really look at what properties have recently sold in the subject property's neighborhood with similar sizes and similar amenities.  Your offer should be similar in terms of price/square foot and keep in mind the seller's net price taking into consideration any types of seller's concessions being negotiated plus any and all applicable real estate commissions.  The use of a real estate agent can help you buy or sell homes so much more effectively.  Buyer's often are cautious of working with an agent because they think that they have to pay for their services when in fact it is the seller's of real estate who are paying the sales commissions. 

 

 

DJ Rondeau

Bay to Bay Lending, L.L.C.

501 South Dakota Ave,

Suite 2

Tampa, FL 33606

813-489-5562- Office

813-480-6077- Mobile

813-464-2867- Fax

djrondeau@baytobaylending.com

www.tampafloridamortgagebroker.com

 

 

Comments (2)

Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Good advice.    When this happens, though, I do think it's a symptom of a market shift, and we may be moving quickly out of the buyer's market scenario of the past two years.   

Nov 27, 2010 04:12 AM
Kevin Nash
Shorewest Realtors, Metro Milwaukee - Germantown, WI
ABR, CSRS

It does perplex me that when a buyer spends so much looking for a home and they finally find one that is hands and shoulders above the rest with all they could ask for and then try to beat the crap out of the seller on price just to loose the home. 

If they could just understand it when we tell the that even in a buyer's market when 2 or more people bid on the same home it suddenly  becomes a seller's market, but what do I know? :-)

Nov 27, 2010 05:15 AM