Dealing with competing offers
Recently, I blogged about how to avoid competing-offer situations that many Vancouver homebuyers face when buying a home. But if you find a home you want to bid on and do find yourself in competition, then it’s important to have a strategy.
Unless your first offer was your best offer already, then you probably want to adjust your offer to your best offer with some strategy. Believe it or not, the competing-bid situation can allow you some comfort: if you offer your ‘walk-away’ price and don’t get the property, you can feel assured you did your best -- if someone else wants to pay more than your walk-away price, so be it.
However, this is no time to say, "I won’t pay list price." It may be that the selling agent has priced the property to attract multiple offers and the published list price may be well below market value.
Ultimately, you still need to have your agent determine market value of the home and you have to be comfortable with your walk-away price. The list price may or may not have any bearing on market value.
More competing bid strategy to come...
Unless your first offer was your best offer already, then you probably want to adjust your offer to your best offer with some strategy. Believe it or not, the competing-bid situation can allow you some comfort: if you offer your ‘walk-away’ price and don’t get the property, you can feel assured you did your best -- if someone else wants to pay more than your walk-away price, so be it.
However, this is no time to say, "I won’t pay list price." It may be that the selling agent has priced the property to attract multiple offers and the published list price may be well below market value.
Ultimately, you still need to have your agent determine market value of the home and you have to be comfortable with your walk-away price. The list price may or may not have any bearing on market value.
More competing bid strategy to come...