Quote:
Originally Posted by Euro7r
Yeah we've been checking out open houses every weekend to see what types of homes are really out there. With the limited supply, do you guys just offer a reasonable lower offer to start and see if you land lucky, or pay asking knowing the competitiveness? E.g. Say your budget is $1.6M and a house is $1.68M, what do offer? What is even considered acceptable in todays market with offers?
I've also seen stupid owners that apparently get offended when I talked to selling agent at open houses. "Oh, the owner got an offer $100K less than asking and felt offended and didn't want to even counter back". A week later, I see owner drop the asking by $50K LOL.
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What you offer will depend on the temperature of the market (hot/mild/cold). But you can’t gauge that until you start putting offers in and seeing what the feedback is like. Once you go through the process a few times and gain experience you’ll start to understand how much you may need to bid for each type of home. Just throwing numbers out there, but as an example, for a house asking 1.68m, you can try 1.55 and see what the feedback is (counter? Ignored?). Look at how busy the open house is and how many offers there are to gauge the market. Then find out what the house sold for. Then rinse and repeat. Also get your realtor to send you sold examples of homes that meet your criteria. The goal is to collect enough data points so you can look at a house and know what you probably need to bid in order to win, regardless of asking price (which is meaningless).
This was a different time, but when I was bidding for a van special against multiple offers, the data and my experience told me I needed to bid at least 1.35 to win right away. But I was too preoccupied with trying to find a deal so I kept bidding 1.3 and losing. And now I live in Coquitlam (not that it’s bad, but that was the cost of trying to find a deal)).