Are buyers possibly over paying in today's market?

Are buyers possibly over paying in a multiple offer situation in a seller's market? Interesting question that can be approached in a couple of ways.

If a home is listed under fair market value, the seller often receives multiple offers. The listing agent often sends out a request to all parties to present their "Best and Final" offer. The seller will choose the best offer, not necessarily the highest bid, but the offer that will ultimately close in the least amount of time.

A buyer might look at this process as the seller being greedy. Not always true. Every seller wants to receive the best price for their property. Buyers want to buy for the lowest price possible without losing the property to another bid. The buyer hopes the appraisal will value the property higher than their accepted offer thus giving the buyer some equity at the very beginning.

List price can confuse buyers into thinking they are over paying if they offer more than the listed price. Not necessarily true, if the offer is within the range of recent sales of similar homes in the area.

Should the house appraise at or more than the offer price, then the buyer is ahead of the game. Buyers should be guided by the comps in a multi-bid situation, not the list price. 

The value of the house is more than just what the appraiser considers it to be, it's whether buyer loves the home, does it fit all their needs and is in the desired location... These are all things that matter along with the appraised value and what you ultimately agreed upon to purchase the home. 

When buying a house, it's not just house, its your home. Our goal is to guide you through the process and get you the house!

Whether you are buying or selling, in today's market you need a trusted real estate advisor to help you make the best decision for you and your family.
Contact Yvonne DeSena, call/text: 702-994-0611 or send your question online