Comments on: How HIGH do I go? http://www.prucalvoices.com/2009/09/how-high-do-i-go/ Conversations in Real Estate Wed, 08 Feb 2012 15:43:51 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Jean Joh http://www.prucalvoices.com/2009/09/how-high-do-i-go/comment-page-1/#comment-1766 Jean Joh Wed, 14 Oct 2009 17:25:20 +0000 http://www.pruvoices.com/?p=1804#comment-1766 Hi Shokoofeh, I've been going through the same thing with several of my clients, especially in the "hotter" areas like San Francisco and some parts of Hayward. I try my best to provide all the information I can and then encourage my clients to put in the best that they feel comfortable with. There's also the assurance that: 1) there is still an appraisal process to help protect against over-paying and 2) prices have come down in many places, such that even if you are "overpaying" right now, you're not really overpaying in the long-term view of things. Thanks for your blog on an all-too-relevant issue nowadays. Jean Hi Shokoofeh,
I’ve been going through the same thing with several of my clients, especially in the “hotter” areas like San Francisco and some parts of Hayward. I try my best to provide all the information I can and then encourage my clients to put in the best that they feel comfortable with.

There’s also the assurance that: 1) there is still an appraisal process to help protect against over-paying and 2) prices have come down in many places, such that even if you are “overpaying” right now, you’re not really overpaying in the long-term view of things. Thanks for your blog on an all-too-relevant issue nowadays.

Jean

]]> By: Adam Chinn http://www.prucalvoices.com/2009/09/how-high-do-i-go/comment-page-1/#comment-1706 Adam Chinn Wed, 16 Sep 2009 01:36:33 +0000 http://www.pruvoices.com/?p=1804#comment-1706 Great Post Shookoofeh, I have been working with a few of my clients for a while and we are experiencing similar things. All of the homes they have put offers on have had multiple offers, most of the time a few cash offers. I have explained to my clients the pros and cons of offering over the comparable sales in the area. It is possible that the seller would take the highest offer and if it doesn't appraise and then renegotiate, great they get the property, hopefully for market value. But if it doesn't, they are then in the situation where they could pay more for the property then what they think it is worth. I always do my best to show my clients the facts and have them make the decision that they are most comfortable with. The market has definitly changed and will continue to do so. Thanks again for the great blog. Adam Great Post Shookoofeh,
I have been working with a few of my clients for a while and we are experiencing similar things. All of the homes they have put offers on have had multiple offers, most of the time a few cash offers. I have explained to my clients the pros and cons of offering over the comparable sales in the area. It is possible that the seller would take the highest offer and if it doesn’t appraise and then renegotiate, great they get the property, hopefully for market value. But if it doesn’t, they are then in the situation where they could pay more for the property then what they think it is worth.

I always do my best to show my clients the facts and have them make the decision that they are most comfortable with. The market has definitly changed and will continue to do so. Thanks again for the great blog.

Adam

]]> By: Lee Ginsburg http://www.prucalvoices.com/2009/09/how-high-do-i-go/comment-page-1/#comment-1686 Lee Ginsburg Mon, 14 Sep 2009 04:50:37 +0000 http://www.pruvoices.com/?p=1804#comment-1686 There is thought out there to overbid even if you know it does not appraise. Your offer gets accepted, the other buyers are out of site and you re-negotiate when and if it does not appraise. I understand banks are willing to do that. It is a doggy dog world out there. If it does appraise they got their dream. There is thought out there to overbid even if you know it does not appraise. Your offer gets accepted, the other buyers are out of site and you re-negotiate when and if it does not appraise. I understand banks are willing to do that. It is a doggy dog world out there. If it does appraise they got their dream.

]]> By: Larry Franzella http://www.prucalvoices.com/2009/09/how-high-do-i-go/comment-page-1/#comment-1636 Larry Franzella Wed, 09 Sep 2009 21:13:19 +0000 http://www.pruvoices.com/?p=1804#comment-1636 Great advise! A client with information will make good decisions. Great advise! A client with information will make good decisions.

]]> By: Claudia Tringale http://www.prucalvoices.com/2009/09/how-high-do-i-go/comment-page-1/#comment-1623 Claudia Tringale Tue, 08 Sep 2009 18:01:13 +0000 http://www.pruvoices.com/?p=1804#comment-1623 This exact same scenario is currently occurring with me and my Buyers that are actively seeking a 4 BR move-up home. We have been out-bided twice now. I finally had the Buyers pre-approved (for the 2nd time) to their highest buying potential so that we know for certain what they can truly afford (vs. not how much they are willing to spend). Even though they were qualified much higher (high 8s and not low 7s), they are practicing sound frugality and don't want to spend their entire savings (always smart to keep a healthy reserve). I told them finally, the best strategy is once you know you found that perfect home and can truly visualize yourself living in that house, then make your best possible offer in your capacity, so that you don’t have any regrets. Even if your offer is higher than fair market value, the appraisal contingency is in place to protect you. Appraisals are very stringent these days, and you just simply can not sell a house for more than the market can bear. Therefore, I agree with Shokoofeh's advice, don’t hold back and get discouraged on making offers for even in a multiple offer situation you never know how things will transpire at the end. The highest offer does not always win the deal – you have to be able to perform. This exact same scenario is currently occurring with me and my Buyers that are actively seeking a 4 BR move-up home. We have been out-bided twice now. I finally had the Buyers pre-approved (for the 2nd time) to their highest buying potential so that we know for certain what they can truly afford (vs. not how much they are willing to spend). Even though they were qualified much higher (high 8s and not low 7s), they are practicing sound frugality and don’t want to spend their entire savings (always smart to keep a healthy reserve). I told them finally, the best strategy is once you know you found that perfect home and can truly visualize yourself living in that house, then make your best possible offer in your capacity, so that you don’t have any regrets. Even if your offer is higher than fair market value, the appraisal contingency is in place to protect you. Appraisals are very stringent these days, and you just simply can not sell a house for more than the market can bear. Therefore, I agree with Shokoofeh’s advice, don’t hold back and get discouraged on making offers for even in a multiple offer situation you never know how things will transpire at the end. The highest offer does not always win the deal – you have to be able to perform.

]]> By: Brian Boisson http://www.prucalvoices.com/2009/09/how-high-do-i-go/comment-page-1/#comment-1619 Brian Boisson Tue, 08 Sep 2009 14:49:26 +0000 http://www.pruvoices.com/?p=1804#comment-1619 Shokoofeh, Thanks for a great posting! When the question is asked for our opinion, we need to present the facts to our client, and help guide them into making a decision- just like you outlined! Thanks again, Brian Shokoofeh,

Thanks for a great posting!

When the question is asked for our opinion, we need to present the facts to our client, and help guide them into making a decision- just like you outlined!

Thanks again,

Brian

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