Updated 07/19/2012 10:19 PM
Tips For Having The Upper Hand In A Competitive Market
Real estate experts say preparation is key when making an offer on a property that could quickly get picked up by the next bidder. NY1's Jill Urban filed the following report.
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Ask anyone who is looking to buy an apartment in Manhattan today about their search and they will most likely tell you the same thing: There’s no inventory.
"When a seller prices right where the market is, you are seeing multiple offers, you are seeing bidding wars and you are seeing buyers attack properties because there is just nothing out there," says Halstead Property Executive Vice President Brian Lewis.
Because the demand is greater than the supply, buyers need to adjust their thinking especially when it comes time to make an offer.
Lewis says if you love a property don’t waste time playing games.
"If a home is priced right and you are a buyer do not even think of a lowball. Don’t do it. Pounce. Do your homework, know it’s value and pounce because the sellers right now are pricing right where they need to be in most instances and you will lose that home if you don’t pounce," Lewis suggests.
Also, be prepared when you shop. Have your pre-approval letters and your financial documents ready before you go looking. If you are using a guarantor or planning for a co-purchase, make sure the other person’s financials are in line as well. Lewis even suggests having a mock offer drawn up.
"A motivated buyer already has their offer made: A plug and play offer that they can tailor for any property they fall in love with. They do not fall in love with properties and then have to run home and invent the wheel. Have the wheel with you, ready to go. When you see that home that is property positioned at an open house - 10 minutes later your offer is on the table," Lewis adds.
If you end up in a bidding or best and final offer scenario, Lewis suggests upping your offer to the very top of your comfort zone or even a little bit above as it could be your only chance to get the home. And if you really want it, you have to go in big.
Lastly, if you’re a seller, Lewis says these are unusual times, but don’t milk it.
"This is not an opportunity to put irresponsible crazy prices out there. We know where the fish are and we know where they are biting. Cast your line right where they are and reel them in. They will start a feeding frenzy," says Lewis. "If you want to create your own market and cast over here you will get really lonely.
And with such hungry fish, it would be a shame to be in the wrong pond.