Even in a challenging market, you could find yourself competing against another buyer for a low-priced property (see “Understanding Short Sales and Foreclosures” above). The listing agent is prohibited from disclosing details of any offers received, so she will ask both buyers to return with their “best and highest offer”. She will then choose one buyer with whom to negotiate a final agreement acceptable to the seller. When considering your offer price, ask yourself, “If we lose this property at this price, will I regret not offering more?” If so, you might want to increase your offer. Conversely, ask yourself “If we get this property at this price, will we regret paying that much?” If so, consider decreasing your offer. Rarely will the other buyer offer more than list price, so if you feel the property is a bargain, consider offering just a little over list price. Even $100 over can create goodwill with the seller and get the property for you. Finally, offering to close in less than 30 days may be very attractive to some sellers, especially if it is a bank-owned property.
Tip #9: Ask Two Key Questions in a Competitive Buyer Situation
- PART OF OUR Home Buying Tips