I’ve had several buyers recently enter into multiple offer situations. Completely different price ranges too. One buyer was looking at a beautifully upgraded and updated single family home in Winter Park, FL, one of the most desirable areas in Central Florida, for around $300,000. And the other, looking at one bedroom $30,000 condos. Both buyers were engaged in a multiple offer situation, and both were shocked, stating, “aren’t we in a buyer’s market?”
Well, yes we are in a buyer’s market, however, the “good inventory” gets snapped up, especially when it’s the right price. In addition, investors are back in the market and are competing with buyers who are wanting to purchase homes as their primary residence. Investors tend to be cash buyers and in both multiple offer instances mentioned above, there was no inspection contingency. This is, in my opinion, especially foolish for a buyer purchasing their primary residence, but investors are capitalizing on this buyer’s market too by being less emotional in their purchase and offer strategies, and many times it pays off for them.
Another common buyer sentiment was “do you really think there’s another offer, or do you think the agent is bluffing?”. I always believe a listing agent is telling the truth if they state there’s another offer. Besides it being unethical to lie, here are some reasons I wouldn’t count on the other agent trying to play poker this early in the game:
- Some buyers refuse to enter into multiple offer situations and will therefore leave negotiations. You would never want to pretend to have a buyer, in hopes of driving up the price, because a real buyer might exit, leaving no offers at all.
- It presents a fair picture of the situation if all parties know other offers are on the table. That way a buyer can present their best offer, realizing if they don’t, the seller may not counter offer with them.
- There aren’t any secret property deals on a password protected, member’s only website. If the property truly is a good deal, chances are, other buyers are aware of it.
My advice in multiple offer situations is to GO FOR IT!! Present your best offer to give yourself the highest probability of getting the home. If it’s a home you truly love, you may need to be prepared to fight for it. The good news is, home prices and interest rates are low, so a few thousand dollars extra won’t make too much of a difference in your payment. And there’s no better feeling than getting the home you love.