Dealing with Multiple Bids

According to the latest sales figures from the   Rhode Island Association of Realtors, single-family home sales   rose 13% in August compared with the same period last year, marking   the 14th consecutive month of increased year-over-year sales, - 760 sold in August, up from 670 in 2011. The median home prices fell 0.07 percent year over year to $204,850 last month from $205,000 in August 2011, the 15th consecutive month with a price decline, but excluding distressed sales, the median price actually rose 4% year over year, and foreclosures fell to 20% of all sales.     There is now a seven-month supply of homes on the market. Six months is considered healthy. As the market improves we are once again seeing multiple offers for properly priced homes. Since there is only one house, someone always ends up disappointed in these situations. I counsel both buyers and sellers the same way, the price is important, but you have to look at the big picture, the terms are just as important.   Buyers need to give their highest and best, make sure you are pre-approved and put a good down payment, be flexible in your timeline, and limit the contingencies.   Sometimes sellers will take a lower price if the buyer can be flexible about the closing date, or promises a quick inspection with no repair requests. If you can’t up your price, offering up as much earnest money as you can shows that you’ll follow through on the terms you offered. This Week’s Real Estate Insight: Multiple bid situations can be stressful.   Buyers and sellers need to decide a price and terms that they are comfortable with.   You won’t ‘win’ if you end up regretting overpaying, and sellers need to look at both the terms and the price that they are offered as well. Many buyers end up walking after running up the bid.   If you don’t get the property, learn from the experience and move on. Remember what my grandmother always said “Don’t look back, it hurts your neck.”