Black Friday is the multiple offers of real estate.

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

I'm off on a long weekend relaxing and enjoying the Virginia Mountains. During a moment of temporary insanity, I decided to drop by a few of my favorite stores. In the midst of my adventure, it dawned on me that it's Black Friday. I'm sure that should be changed to Black and Blue Friday. 

It was entertaining to watch all of the bargain crazed shoppers. Each onetrying to get that one item that was 50% off from 10:00 am to 10:15 am. Pushing, shoving, shouting, elbowing, tripping, griping, grumbling, stumbling, fumbling, well, you get the idea. I know it has to be stressful for all involved. I was mostly window shopping, so I didn't really care what the ninja shoppers were up to.

It made me think of the stress buyers go through when they are buying in a hot market where multiple offers are the norm. These Black Friday shoppers could do a number of things to avoid the stress, but that's not the purpose of this blog. What can buyers in a hot market do when they are confronted with buying challenges? Buyers:

  • When you find a house you are really enamored of, remember, "Don't fall in love with anything that can't love you back." A house is just a house. If you miss this one, there is a great chance that a better one is just around the corner.
  • Always know the market. Ask your Realtor to keep you up to date on properties in your market criteria, and make sure you have good comps to make sure you're not getting carried away with the multiple offer madness. It's easy to over offer on a house because of the bidding war. The problem you may run into is that the house will not appraise for the offer amount, and you will have to ask the seller to drop the price to meet your appraisal or you'll have to bring more money to closing, or worst case scenario, you'll give up the offer. 
  • Keep looking during the process. You don't need to make offers on other properties, but if you find one that better suits your desires, pull out of the bidding war and buy the property that isn't being fought over. 
  • Make a buying plan and stick to it. You may increase your purchase price a little if it's within reason, but increasing 20-40% is not a rational purchase. (See the first point) My younger son put an offer on a house this past summer. The house sold for 40% over list. His offer was 20% over list. That was a limit of what was sane for that particular house. The buyer bought beyond value of the house by $20000. Why? Multiple offer hysteria.
  • Put your best foot forward first. You may end up in a multiple offer situation, but there may be no second chances to make a highest and best offer.
  • Be willing to walk away. There is no logical reason to pay too much for a home when there are homes you can afford that meet your needs, wants and desires.

Black Friday is only one day a year, but multiple offer scenarios can pop up at any time. Be ready with a plan to engage when you find a property that catches your eye, but also be ready to move on. Don't get caught up with the craziness. It will blind you to other opportunities. 

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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I love the advice you lay out here for buyers.  Multiple offer situations can also be avoided by not waiting to write until someone else does.  If you want it and don't want another buyer to get it, make an offer the seller won't want to lose.  Be the first and only offer.

Nov 23, 2018 08:02 AM #1
Rainmaker
509,103
Francine Viola
Coldwell Banker Evergreen Olympic Realty, Olympia WA - Olympia, WA
REALTOR®, In Tune with your Real Estate Needs

Good tips for buyers.  Preparing is key for buyers - know your finances, the market, and check your emotions. 

Nov 23, 2018 09:42 AM #2
Rainmaker
3,408,298
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good afternoon Mike. i never got the Black Friday frenzy. I went to a garage sale.

Nov 23, 2018 10:00 AM #3
Rainmaker
2,407,020
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Enjoy your weekend of relazation, Mike!  Those are great tips for homebuyers!

Nov 23, 2018 10:02 AM #4
Rainer
477,548
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Mike,

Definitely! I am not fond of either. Plain old steady markets with a few offers, but not too many are my preference.

Nov 23, 2018 10:38 AM #5
Rainer
241,412
Gretchen Bradley
Realty Source Inc. - Roseville, CA

Awesome post Mike.  You nailed it on every point!

 

Nov 23, 2018 06:24 PM #6
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Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Enjoy your common sense approach! All the best - Lynn

Nov 23, 2018 08:37 PM #7
Rainmaker
1,484,032
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

You offer sound advice. There is no benefit to becoming a crazy Black Friday shopper!

I'm glad you made it home again without being run over or trampled.

I've never quite understood the appeal of getting up in the middle of the night to make it to a store at 5 a.m. and fight over the one or two items offered at a ridiculously low price. But - to each his own. Some folks seem to love it.

Nov 23, 2018 09:03 PM #8
Rainmaker
2,742,750
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Mike.

One statement you wrote today, hits the nail on the head.  A house is just a house.  I see it as a temporary place, I worry more about where I will be after I'm planted in the ground.  

Nov 24, 2018 01:44 AM #9
Rainer
115,226
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

This is great advice to buyers! Thanks.

Nov 24, 2018 07:32 AM #10
Rainer
390,615
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

You have touched on putting reasoning before the purchase. I agree. Dont get caught up in the fog.

Nov 24, 2018 05:07 PM #11
Rainer
155,414
Monique Ting
INET Realty Honolulu, HI - Honolulu, HI
Your agent under the sun

Thank you Mike for making this analogy.

The world is indeed divided into those who enjoy shopping on Black Friday/getting into bidding wars and those who don't. Thank you for laying out the potential downfall of getting swept up in a bidding war game... it may be fine for some but others might not realize what consequences might ensue...

Nov 26, 2018 04:34 PM #12
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Mike Cooper, GRI

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