Record low inventory has forced buyers into a tough spot. Bidding wars are abundant in this market, this is good news for sellers but often a nightmare for buyers. Bidding wars fill buyers with conflicted emotions from having the desire to win the home and at the same time not overpaying for the property.
Once a listing agent informs a buyer that there are multiple offers on a home, most buyers begin to ask a lot of questions:
“How do we know what the other offers are, can you find out?”
“How do I know if I am going too high?”
“How will I know if I go too low?”
“I don’t want to overpay, you know?”
These are some of the frequently asked questions a buyer makes before submitting an offer on a property with multiple offers. Under the circumstances, these questions are completely reasonable and warranted. The problem is, there is no way of knowing what other buyers are offering.
When a listing agent is fielding multiple offers, their obligation is to be fair and keep everyone on an equal playing field. It would be considered unethical for a listing agent to give out this confidential offer information to buyer’s agents regarding other offers because it would put some at a disadvantage. This being said, buyers really need to work with their skilled buyer agent to formulate a competitive offer to truly put their best foot forward.
When putting together an offer, there are many things to consider including:
• How long the home been on the market
• How long the home been on the market at its current price
• How it compares to other similar homes in the area
Your buyer’s agent can put together a market analysis of comparable homes based on recent sales in the area. Buyers should also keep in mind that sellers are always trying to get as much money as possible, just as a buyer is trying to pay as little as possible. This is completely customary and a normal part of the process. In addition, it is the listing agent’s job to get as much money as possible for the seller so it typically would not make sense for them to share these details.