Competition can be a blast.Professional sports, for example, or a game of Scrabble that puts sweat on your brow. It’s adrenaline, and it can be a lot of fun. That said, competition when it comes to buying a property can simply be a pain in the behind.
I’ve been thinking about some common mistakesthat buyers make in multiple-offer situations. I offer these to you so that you can hopefully emerge the winner in these tough situations:
1) Failing to have your agent do a full comparative market analysis of the property, which provides a clear assessment of its market value.
2) Not understanding the strengths and weaknesses of the property. Making a list of both can be helpful during negotiations.
3) Making a purely emotional decision on the property. When the competition is heated, it’s tempting to see a higher value than actually exists. Savvy listing agents will seize upon this, so be wary.
4) Not setting a walk-away price before starting negotiations. Know what you’re willing to pay and how much is too much.
5) Neglecting to do due diligence by inserting contingencies in the purchase contract. A perfect-looking home can have a quarter of a million worth of pest damage, so let the buyer beware.
6) Working with an agent who is more interested in making a deal rather than making the right deal for you. Your agent should work on your behalf and should know the area’s market values – and how to negotiate.
7) Not doing your research on the seller, the property and the listing agent.
8) Failing to make sure that there are indeed competitive offers. Sometimes the listing agent, uh, fibs a bit. It happens.
9) Giving up too early in the game. Just as you need to know when to walk away, you need to know when to stay. You got to know when to hold ‘em, know when to fold ‘em.
10) Not asking for a backup position if you lose in the bidding – if the first deal doesn’t go through, then the backup offer is immedately elevated into an accepted position. Keep in mind that between 10 and 15 percent of deals fail, so if you’re truly interested in the property, it never hurts to go for backup.
Want more advice? I’ve got it. Let’s talk.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call or email at 415-577-0809 or email at firstname.lastname@example.org. www.ceceblase.com