Should You Wait to Make an Offer on a New Listing?

It’s sensible and smart to not be the first bid for every now listing, but how long is long enough to wait to enter your bid? And how do you know when to simply pass, or proceed in making that bid on your dream home.

There is no one-size-fits-all answer. Pace is determined by the market and the seller’s motivation/determination.  But you shouldn’t wait too long when you find your next potential home.

Do your homework and get to know the neighborhood. Find when all the neighboring houses sold and for how much. Make sure to have your mortgage preapproval letter ready as well.

If you are a buyer and know you WANT this house, do not wait. Go for it!

Use caution with early offers

Most sellers begin to believe they have priced their homes too low when offers start coming in fast. But we all know the first offer is the best offer. They usually tend to become worse with time. Real estate agents’ jobs are to sell properties at the highest price, in the shortest amount of time.

Make a fair proposal

A house’s greatest interest is when it just gets to the market.

Here’s a good example: a family is looking to buy a house, but had lost several contracts previously to cash buyers. Finally they found a good home and waited 10 days to bid $10,000 below the asking price. The family did their homework and knew the true value of the home, and what they were willing to offer. The seller asked to meet them in the middle and only go down by $5,000. A deal was made and both parties win.

Show your appeal

Besides being fair with your bid, make one that is appealing. Make yourself look appealing, by not needing to sell your current home before buying this home. You want to look like a perfect candidate. It also helps to groom yourself and not look like a bum. It will also benefit you to have a full 20% down payment. If you can go more, do it.

Know the market

Getting the first bid probably won’t get you a deal, but it will probably get you’re the house you want. It’s general rule you will pay the higher price for offering right away. If you are in a fast-paced market, bidding early can benefit you. If a home goes on the market on a Monday, and has 5 offers by Friday, chances are it’s best to be one of the offers. Don’t wait too long, but most importantly, know how the market is moving around you.

Can you wait to make an offer?

Do not bid early if you are unsure of the market, what you want, what you can afford, and any other details. Be careful with what you are doing and don’t get sucked into the first bidder, unless you are absolutely sure you want this house. If you see your dream home, get it! Wait to make an offer if you are unsure.

 

Best of luck!

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