Losing Homes in Multiple Offer Situations:
The Upside for Buyers
If you’re an active buyer and find yourself losing out on homes in multiple offer situations, take heart. There is a bright side! Read on for the good news about losing in a multiple offer situation.
You like desirable properties.
The fact that many people want the same home as you indicates that you have great taste in real estate! If lots of people want to buy such a home now, the odds are very good that the same thing will happen when the time comes for you to re-sell it
You’re looking in a high-demand area.
Location, location, location. You’re looking to buy in a popular, in-demand neighborhood, which can only help future resale value.
You want to maintain your desired terms.
Keep in mind, you may have lost out on a home for a reason other than price. Often, another buyer has offered more agreeable terms, such as a cash sale, quicker settlement, or made a non-contingent offer. In some cases, terms matter more than the price. You’re wise not to put yourself in a situation in which you’re not comfortable. For example, don’t remove your home-sale contingency to get a house if doing so will cause sleepless nights.
The local market is experiencing a rise in value.
Typically, multiple offer situations occur when the demand for homes exceeds supply or when a home is priced below market value. However, it can also happen when the local market is rising in value — always a good sign!
Moderate bidding is smart house hunting.
The smartest thing a buyer can do in a multiple offer situation is to walk away when things start feeling uncomfortable. Some buyers get carried away in competitive situations and pay far above asking price (and often the home’s true value). While these buyers may have “won,” those who have “lost” out on the home end up in the better financial situation.
You don’t want a “bargain” home.
If a home in a desirable neighborhood seems like a “great deal,” buyers should see that as a red flag and walk away. Homes in hot areas that no one else seems to want exist for a reason. These “bargain” homes may end up with multiple offers in a hot market, but there’s usually a very good reason the home was priced so low. Whatever the reason is, you’re better off staying away.
Be sure to read Allison’s best tips for winning in a multiple offer situation.
The Bottom Line
While we know losing out on a house you really had your heart set on stings, there is a bright side. You’ll often end up in a better financial situation with better resale opportunities than the winning buyer. Remember that you’re looking at great homes in desirable areas – which is smart real estate.
Whether you win or lose, remember that it’s not how much over or under the asking price the home sells that makes it a great deal, it’s how it compares to the comparable sales in the area.
Are you tired of losing out on homes in multiple offer situations? To achieve your dreams of homeownership, please contact us today. Our mission is to help all of our clients love where they live!
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