It’s the Era of Multiple Offers and Bidding WarsApril 28, 2012
As the economy gets stronger and buyers are getting more confident, the demand on properties has heated up. In the best Boston neighborhoods, like Back Bay, Beacon Hill, South End and the Waterfront, there is a higher demand and shortage of inventory. This leads to multiple bids on properties.
If a nicely renovated, move-in ready property shows well, and of course is priced right, there will be multiple offers. In most cases, listings sell for over asking prices. The key is to price the property right to encourage strong offers.
I want to share an incident I was faced with last week. I had a buyer who had been waiting for a particular property for a long time and the Boston luxury home finally came on the market. Knowing that there will be multiple offers on the property, the buyer didn’t want to get into a bidding war and simply walked away. The property was underpriced and sold 6% over the asking price – my buyer missed out on his dream home.
Rather than stepping back from a listing in the best Boston neighborhoods, put your best foot forward and make an offer that YOU feel comfortable with, regardless of what the others may offer. You never know what the terms of other offers are, and at the end of the day, the value of a Boston luxury home is what people are willing to pay for it.
The notion of “I don’t want to get into a bidding war” or “I don’t want to overpay” is passé. If there are multiple offers, it doesn’t mean a bidding war will ensue. You just make your best and final offer, and it may or may not go through, but at least you have tried. Otherwise, you will regret walking way from the best Boston neighborhoods. Trust me, I have heard enough buyers say “I wish I had…”
Now is a good time to get into the market. To have first dibs on your choice property, you need to work with a strong, knowledgeable agent who is on top of all the new Boston luxury home listings and aware of properties before they hit the market. Contact me to discuss your wish list.