Buyer Value and Multiple Bids
Buyers often feel dejected when they find a property they love, only to discover multiple parties are interested and bidding. In some markets this is to be anticipated, and smart agents educate their buyers on this scenario before they even start looking. While it can feel like you’re losing hope when others are bidding against you, here are five positive situations.
1. When others are eyeing the same property as you, that home is obviously very desirable. Usually when buyers have a sense of urgency on buying, others will want it in the future when you decide to sell. This is even more true when you are in an area with a limited inventory, driving up demand.
2. Know the neighborhood — if you are in an area that’s in high demand, you need to be aware of it.
3. Usually, multiple bids emerge when demand exceeds supply, when something is priced below market value or when the market is rising in value — Perhaps the market is under-valued?
4 .Bidding as much as you are [somewhat] comfortable doing is the smartest approach. Some people do get completely carried away and pay vastly over the asking price. Granted they usually get the property, irrational exuberance can have bad consequences!
5. Bargains, or the homes no one else supposedly wants, are very scarce in highly desirable neighborhoods. Beware of buying a bargain, and then owning a bargain. The “thrill” of a good deal may be outweighed by the quality of the product. On the flip side, sometimes sellers overprice a property and change their mind once a strong offer is presented. Sometimes, there's a diamond in the rough and a good agent or a savvy buyer can see past the mess or hurdles others consider deal-breakers. Proceed with caution!