Archive for October, 2009

Highest Bidder Not Always the Winner

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Soon we’re closing a purchase on a home that brought in almost 30 offers within the first week. We priced it according to the local market and the offer we accepted was without the road-blocking contingencies of loan or appraisal.

The risks of accepting a higher offer was explained to the sellers. Although the offer accepted was still well over the list price, we made sure that buyers had enough money in the bank to make up the difference in case the appraisal did not come in at the offer price.

A few years ago I paid $6000 more than the asking price because I WANTED that property! Serious buyers are willing to offer more in order to get what they want. Others refuse to pay more than the appraised value, often times due to lack of additional funds in the bank.

Either way, real estate is an investment. You have to pay to play!