What Should A Buyer Do In A Multiple Offer Situation?

You have been out searching for homes with your buyer's agent throughout the Charlotte, NC. Region. He has shown you quite a few homes and you have selected one that fits your needs and wants. You and your Realtor go over the comparables in the area and present a fair offer on the house. The seller's agent replies back to you that you are involved in a multiple offer situation.... You have a deadline to get back to the seller with your highest and best offer. This situation is becoming more prevalent today than it has in the past few years. With interest rates at historic lows and rents going up substantially because of the market more buyers are out looking and purchasing homes in the Charlotte, NC. Area. This has led to homes that are priced right and show well to get multiple offers on them. So what do you do? First, do not over react to the situation. There are still plenty of homes out there. This may be the right home for you but do you want to over pay for a house? I hear a lot of buyers get nervous that they are going to lose the house unless they pay too much for the house...Not necessarily true. I just had a situation where we went through the comparables and I advised them of what I thought a fair market value was for the house in the condition it was in. We presented our highest and best offer at that number (which was less than the asking price) and were notified we were the highest offer. So, you do not always have to base your decision that you will have to pay over the asking price to guarantee you will get the house. Second, make sure your buyer's agent does his homework on the house. Carefully go over the property disclosure statement. Check and see what the age on some of the items is in the house. Verify the comparables are the most recent and accurate ones for that house. An informed decision is always the best decision. There will be cases where after gathering the information you may find out the house was underpriced and offer over the asking price for the house. I had that situation about four months ago. Actually, i think the agent did it intentionally so as to get into a bidding war and get close to what they felt the house was worth. In his case it worked. We went 20% over asking price and still lost out on the house. Third, do not make a hasty decision. As in all multiple offer situations the seller should give you at least 24 hours if not a little more to decide on what you’re highest and best offer is going to be. Think about it and sleep on it and rethink about it again then make a decision. I hear too many buyers tell me go in with X dollars without even thinking about it or hesitating on the decision. I explain that we have time and think about it and we talk through it to make sure they are making the best decision that is for them. Multiple offer situations can be a tricky situation if not handled properly. I always make sure my buyers fully understand the situation and we go over again all the comparable and the numbers and we work together to come up with what is a fair number and price for the house that i feel is good for them and one they feel comfortable making... Just know that sometimes you may not win the multiple offer situation and that may not be a bad thing. Dave diCecco Realtor/Broker www.davedicecco.com