Sunday, February 19, 2012

The "Ebay of Real Estate"

I am thinking about writing a book on how real estate has evolved into an auction like bidding war when putting in offers for many homes today. I'm sure some of you agents out there would agree with me that it can be frustrating when you have an offer in on a home for a buyer and there are over 5 other offers you are competing against. I guess I wouldn't be so concerned about this but the fact of the matter is that homes are being listed under value to start with and then it's off to the races! For example, the last home that I sold was listed at $250,000 and by the time we went to close, we had outbidded 4 other buyers at a whooping $290,000 which was fair market value anyhow. This is how most of my offers look like today if the home is a desirable property.What happened to the good ol' days where you could negotiate a price down? The other part is that when you get most buyers today, you try to tell them how it works upfront and most people don't believe you until you're in it! Both my buyers both asked me how much "discount" we could ask for on several listings and now that we have gone through several offers, I now consider them to be savvy buyers. My advice to any other agent is to do a good job assessing what the homes market value really is and then submitting an offer at that price. DO NOT MAKE AN OFFER BASED OFF THE LISTING PRICE!

John "Ask John" Doan
CA Real Estate Broker & Mortgage Broker
Ph: 714-908-4111
Cell: 949-433-3184
Fax: 888-488-3229

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