Sorry your uncle doesn’t know – Waterford home buying
I was taking a young Waterford first time home buyer out and we put in an offer on a HUD home. It was extremely underpriced for the market. By at least $30,000. My young client looked at the comps and said it was only underpriced by $20,000. (He knew better than an 8 year veteran real estate agent that shows homes every day). So he put in an offer of $10,000 over list price. I thought the winning bid would be at least $15,000 over list.
We had about six days to wait for the initial bid deadline. About half three days later he calls me to ask me if he could cancel his bid. His daddy had told him he should never pay above list price. I talked to the buyer and had a conversation about the comps in the area and he agreed the house was worth more than he bid. He decided to keep his bid in.
Over the next several days I had conversations with the nervous Waterford home buyer. His dad was telling he was doing the wrong thing. The buyer was a little convinced himself that he was overpaying and that he would win the bid. Of course the uncle even called me to go over everything.
Well Monday finally came and low and behold we didn’t win the bid. Somebody else had bid more. My young client was shocked to find out he had lost. He asked “why would somebody pay that much?” My answer was simple “IT WAS WORTH IT AND SOMEBODY ELSE KNEW AND WANTED IT’.
So the bottom line is when buying Metro Detroit homes in 2012 it is common to see over the list prices and multiple bids. So when bidding don’t listen to your friends, or uncle. Listen to the realtor that knows the market and look at the comps. They are the true indicator of what the house is really worth.
We are not going to get rich by having you bid $5000 higher? That is $150 to us. Our goal and your goal is to get you the house you want. Under bidding will only get you frustrated. So if your real estate agent says that he thinks the winning bid will be in a certain range, then if you really want the home you need should bid in that range. In the end if you lose 2 or 3 homes, know who will get blamed? Me of course. Not the uncle who told them to bid low.
My goal is to get the house you want. In order to do that you have to win the HUD bidding process
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