It’s like driving.
This particular type of competition is very much like driving.
I don’t often write blatantly about real estate, for the most part because I don’t think that most people think it is as interesting as I do, but again, my day to day is buried in it.
But right now anyone can see just what a big ball of crazy the real estate market is currently.
And the thing that is driving all of it is demand.
Demand for affordable housing.
Which means the minute something even remotely affordable is on the market you get multiple buyers vying for that specific home. And inevitable when that happens my client will turn to me and say, “how much should we offer?”
To which I say, “I can’t tell you how much to offer.”
Then the inevitable reply, “how much do you think the other offers are for?”
I don’t love that question.
Not because I don’t have an answer for it.
But because it doesn’t help my client if I just tell them what I would do. Because not everyone has the same motivations.
So I talk to them about speeding tickets.
Without fail, every time I have gotten a speeding ticket it was when I didn’t realize I was speeding, I was just sort of rolling along with the speed of traffic rocking out far too hard to whatever late 90’s punk rock was the flavor of the day.
When it happens.
The red and blues light up behind me.
And I have that moment where I hope they aren’t coming after me, so I pull over and alas, I am not passed by the police car.
I am hosed.
But the reason I get the speeding ticket is not simply because I was speeding.
It’s because I was letting other people determine my speed.
Which is not an effective way to gauge how fast you are going.
The best way to know how fast you are going to to trust your own speedometer. You have to know how fast you are going, and how fast you are willing to go in any situation.
The same goes for writing a competitive offer in a multiple offer situation.
You can’t write it based on what someone else may or may not do. You have to pick the price and terms that the best possible terms and price for YOU. The offer has to be such that you will be happy that you got the house, and will feel okay if you don’t.
Typically when people make an offer they regret it’s because they got wrapped up in following someone else’s speed.
There is a lot to be said for sticking to you internal compass.
It knows what you should do.