Buying a home is one of the biggest decisions and purchases that you will ever make. Many buyers are under the impression that they should not make an early offer on a brand new listing. However, if you have found the home you want, waiting to make your offer could leave you full of regret if you find out the home was sold before you even had the chance to bid. Below are RYP Property Solution’s tips for making an early offer on a newly listed property.
Research the Market
The key to bidding effectively in a way that will help ensure you have the chosen bid is to research the market. Know what similar homes are selling for and how long they are sitting before being sold. If houses in the area have a pretty fast turnover, you definitely do not want to wait.
Be Cautious with Low Listings
This point is somewhat related to the previous one. It is important that you know what homes are selling for in the area. If bids come in at list price the seller will know they priced far too low. Alternately, they may have intentionally priced low to generate a bidding war. In this case, you need to be prepared to potentially pay well over list because other buyers want it just as bad as you.
Bidding on a new listing should not be done unless you are really serious, especially if there ends up being a bidding war. Even if your bid is higher than others, if you don’t have 20 percent down or haven’t already been pre-approved, your bid will not look quite as attractive anymore. You need to appear serious if you are going to have any chance at all of being the winning bidder.
Focus on Weekend Listings
In fast moving markets it is not uncommon for several houses to go on the market Thursday or Friday morning only to be already sold by Sunday. Sellers looking for serious buyers often start their listing close to the weekend because that is when most people are out looking. If you don’t make a point to see what is newly listed, you could miss out on your dream home.
Unlike buying a car, playing hard to get is not going to do you any favors with new listings. If you see a home you really want don’t hesitate to make a fair offer even if it is an early offer.