Are multiple offer situations bad for a buyer?

Multiple offer situations are not always bad for a buyer. Don't just walk away from a property just because its in multiple offers. Here are some great questions to ask your real estate agent.

1. Why is it in multiple offers?
Possible answer: Its a pricing strategy by the selling agent. Price the home under market value in hopes that several buyers will make offers. This gets a home sold quickly and it can sometimes drive the price up to market value or even above market value.

2. What is the market value of the property?
Possible answer: Have your agent do a market analysis on the property and determine the actual market value. Then offer below that, but above asking price and you can still get a great deal! Its always great to have instant equity in your new home!

3. What should my max offer price be?
Possible answer: Market value or below if its an investment property. If its your dream home and you have been looking at homes for months and this one is the only one that you love and can see living in for the long term....then go ahead and offer higher than market value. The home will still appreciate in value over the long run. Just stay within your budget!

4. When should I walk away from this property?
Possible answer: Walk away when the price goes over market value and look at other homes. As long as you keep an open mind and willing to compromise-you will find the right house for you at the right time.

Multiple offer situations are not always bad for a buyer. Think positive and use the strengths of your real estate agent.

Allison Deal
Keller Williams Realty Integrity
www.MNfamilyhomes.com
allisondeal@kw.com