Should Your Buyers Increase Their Offer?
Limited inventory and a very strong demand for housing has created an environment where bidding wars are commonplace in today’s real estate market. Homes priced properly are getting multiple offers within a short time of coming to market. This brings about a dilemma for the agent: How should they advise their client who is about to make an offer when other offers will also be presented?
Over the last several years, there wasn’t any pressure on the buyer to adjust their offer for three reasons:
- There were plenty of homes for sale
- Prices were falling
- Mortgage interest rates were falling
They buyer could find another home easily for probably less money and a lower mortgage rate. There was no downside to not ‘upping the ante’. However, in today’s market, things have dramatically changed.
Take a minute to read the full KCM Blog post for some great information on making an offer.