Real Estate Agents Pass On Advice For Home Buyers In Bidding Wars
LARCHMONT, N.Y. (CBSNewYork) -- It is getting tougher and tougher to find a home in the suburbs these days, with buyers going after all the same homes.
CBS2's Lou Young had some tips Wednesday to proceed if you find yourself in a home buying bidding war.
Real estate agents said anyone shopping in the superheated New York suburban home market this season had best be prepared.
"Around here, you can get a listing on Friday, and by Sunday go to multiple bids," said real estate agent Nancy Elsas.
Westchester County in particular is bidding war territory, with real estate agents setting the bait for multiple would-be buyers.
"I find that if you list it a little bit low, you'll get multiple offers" and spark the war, said real estate agent David Turner.
One house in Bedford that Turner just sold went to sealed bids from three would-be buyers. Turner cautions people not to hold back when it gets to that point.
"I've had buyers call me after the conclusion of the bidding war and saying: 'Can I go a little higher now? I've decided I really want it and I didn't go high enough,'" Turner said. "Generally, there's not that opportunity."
Turner said bidders should be bold, but not impulsive. Also, they should know the appraisal value of the property, especially if they are financing the deal as most people do.
"The bank is going to decide what the value is, and if it doesn't appraise for the contract price, the buyer's going to have to make up the difference in cash," Turner said.
The other big items are to be pre-approved for financing before you start, and to have the property inspected before you bid on it if possible. Rye agent Elsas said buyers should try not to be difficult, but it could cost them the house.
"If I'm selling my house, I'm not waiting for somebody to get their mortgage. I'm not waiting for somebody to quibble about this little bit and this little thing in the house," Elsas said. "We want somebody who's raring to go, and those are the people who get the houses."
In short, the advice is to list low, bid high, have your financing pre-approved, know the appraisal, pay for inspections, and be nice but have nerves or steel -- or stay home.
Agents said it is also not uncommon for bid winners to have morning-after remorse, realizing the bid was more that they could afford. The bottom line – it' ain't easy out there.