As to the highest offer being accepted, this is up to the seller to choose whether they wish to do a "best and final" and allow buyers to raise their bids or simply choose an offer. As an agent, I never know what my sellers will do until we evaluate offers and often there are terms that a seller prefers, not just price, that mean they simply choose one.
I have to agree that the best weapon these days to have is a super smart buyers agent on your side. Someone with good strategies for bidding wars and that can help you to present yourself as the best choice for a seller. Good luck!
It is difficult to figure out what to offer, but I will remind you (and other readers) that when the market was slow, the listing price was higher than what people wanted to pay, and they would lowball even if the property was listed at Free. "Free, you say? Will you pay closing costs, too?"
Finally. The reason sellers like to take the highest offer is because it feels the most sincere. You go back to the other buyers, maybe they say they'll pay more, but what if they have a contingency, and a week later, when the pressure is off, they decide to revert to their original price?
Basically, buyer, this is what a seller's market looks like.
All the best,
Secondly, if I have a desirable house, I will bring it on right at or slightly below market value and withhold showings for a week and allow 3 or 4 days before offers are presented. It is a technique some agents use and if done correctly will immediately produce multiple offers.
What you need to do is determine fair market value of the home and put your best foot forward coming out of the gate. A seller can list a home for any price they want. Some are drastically overpriced some are slightly overpriced, some are listed right at market value and others are listed below. A good buyers agent will help you determine what fair market value of a home is at any given point.
Being in a multiple offer situation is difficult at best for anxious home buyers. If you feel the home is a great value so will other buyers. Sometimes it will drive a house up past fair market value because of the competition among buyers. When you are in this situation, put your best foot forward and offer your highest and best immediately. Don't forget there are other factors such as closing date and financing that can make an offer more attractive.
Best of luck to you!
I don't have to tell you how hot the market is in the Metro-Boston area. The shortage of quality homes for sale has introduced some interesting dynamics into the marketplace for sure. With prices rising so dramatically it's making it a challenge to price a home correctly since the comparable sales we use to support pricing proposals tend to lag a moth or two behind real-time market activity. Luckily for Sellers (which will be you some day too!) there is minimal risk that a property will sell for less than it's worth in a market like this because competition will drive the price up to what the fair market value is. The danger of overpricing is still there, though, so a Seller still needs to be a little conservative with pricing. Once it hits the market, a frenzy of sorts ensues. I doubt there's any intent to underprice properties (sellers won't typically play along with that kind of thing) but I can understand why it can look that way from a buyer's perspective.
Real Estate Agents will work with Sellers, but also with buyers, so we get a front-row seat on both sides of the proverbial table. The above situation is what Sellers are experiencing which is a lot more pleasant than what buyers are going through right now. Even experienced, competent agents are having a hard time getting offers through when they are working with buyers. I consider it vitally important to be up-front with new clients about what they can expect to go through as they search for a home in a market like this, but it doesn't sink in until a buyer swings and misses a couple of times. Strategies that got offers accepted a few months ago don't seem to be doing the trick any more. At a minimum I advise my clients that their initial offer could easily be the only chance they are going to get at putting a property under agreement. We sit down and come up with a number that they can live with if they "lose" on a property, and that number also has to be one that they can live with if they "win" on a property. When I work as an agent for buyers I really miss the days when I could actually have some hope of negotiating from a position of strength. My main contribution to a buyer these days is to use what I know to actually get an offer accepted. At least in a climate like this it's reasonable to hope that what might feel like an "overpayment" at first will be absorbed by appreciation in value later.
With a little bit of luck, a sense of humor, and a ton of determination you will succeed eventually. It's not an easy thing to do right now, but it's so worth it in the end!
Best of luck in your search.
This is not all that uncommon, I tell folks to consider renovation financing as an alternative. Find the property in the best location in either the worst condition or not exactly what you want and get a renovation loan and turn it into the home you set out looking for. These are the homes that are less likely to have multiple offers on. Typically your competition is investors. As the purchase price gets closer to the actual market value investors bow out of the bidding. Investors need to make sure they can turn a profit so they need to purchase at a discount.
If you want to reach out and discuss renovation financing in more detail don't hesitate. and remember there is a really big difference between a loan officer that originates and closes renovation loans on a regular basis and one that simply has access to renovation loans.
The best number to reach me at is 781-376-2233.
An experienced buyer agent can help a buyer work through the comparable sales and craft an offer to help the buyer have the best change of being accepted by a seller when they are looking across multiple offers. Price has a lot to do with it but there are other factors which can be incorporated to make an offer even more attractive than one that has a higher price tag attached to it.
Buyer Agents of Boston is an exclusive buyer agency real estate firm (we only work with home buyers in Boston, Cambridge, Arlington, Brookline, and surrounding suburbs) experienced in multiple bid scenarios and helping home buyers find (and buy) the home of their dreams.
I'm happy to discuss this with you further.
Best Of Luck