In order to win an offer for a house many buyers are discovering that they need to submit their highest and best offer at the onset of the home buying process to secure the house that they want. Even though the real estate market has seen a decline in the costs of housing, buyers that are bidding for the number f offers being submitted for consideration to sellers are driving the actual prices of the homes back up by a few thousand dollars over the original asking price for the property.
When a seller lists a home for sale they have to be cautious not to price their home too high as in the current real estate market sellers have to compete with short sales and bank owned properties. Because of the market saturation with distressed property home sellers are being forced to lower their asking price for a home that is surrounded by foreclosed real estate. By lowering their price the seller may still be able to pull equity out of their home, but may not be able to have the big profits that they have anticipated when the housing market was stronger a few years ago.
Ironically, some sellers are listing their houses for sale at prices that are within the market value of their neighborhoods and not seeing any action from prospective buyers that are searching the market for good deals. After a month or more of having no one call to see their homes these sellers are dramatically reducing their asking price by as much as twenty thousand dollars in some cases.
The theory behind the sudden drops in price suggest that the current owners are making a last ditch effort to sell their home before it is foreclosed on by the bank after being in default for a number of months. Some sellers may want to save face by selling their homes at market value prior to going into foreclosure, but quickly realize that settling their past due debts will not allow them to walk away with money from any equity in their pockets. As the auction deadline for the home approaches the theory that sellers reduce their price to a short sale status becomes a reality and the seller reluctantly accepts the offers that come in after they drop their price.
For buyers that have been patiently watching the real estate market, housing price drops are the sign to move quickly and it is at this point that multiple offers are sent to the seller who has the option of choosing the highest and best offer. For buyers the mad scramble to secure the best bid for a reduced price home may mean offering far above the newly adjusted price, but the highest and best offers of the buyers are still below the original asking price of the desperate seller.
Re/Max Loisiana (http://www.remax-louisiana.com)provides buyers and sellers with real estate maximums quality professional service. Art Gib is a freelance writer.
[tags]Rouge real estate, Lafayette real estate, Louisiana real estate, New Orleans homes, Shreveport real[/tags]
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