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
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