There are multiple offers coming in on the home. If you are interested, we need to make an offer now is commonly heard.
As a result, Lehigh Valley Home Buyers that may really "want" the home are getting beat out by competitive buyers that have more spending power.
The fact that a home buyer has more spending power may not always be a positive. That buyer may be more easily able to accept a lose on the home inspections/appraisal and even the deposit and just walk away from the purchase without worry that it will cause them a financial problem.
An offer with Sellers Assist (help with buyer closing costs) that may have been seriously considered a while back can be a "not so good" offer when multiple offers are received.
If you have a Lehigh Valley Home to Sell, the owner of the home you wish to purchase, may not even consider your offer if your current home isn't already under agreement. (A Settlement Contingency...house is under agreement versus a Sale and Settlement Contingency...need to market and find a buyer)
The Home Buyer that needs closing cost assistance or has a home to sell is getting beat out on a home even though they may have the most Motivation/Incentive to purchase the home.
After a year of dealing with the Lehigh Valley Real Estate Market and Multiple Offers on Homes, I have come to the conclusion that the best offer may not always be the best.
Some Lehigh Valley Home Purchase Offers:
Full Price Cash offer from the first showing on a home. Terminated on inspections with no solid reason and no attempt to see if seller would do repairs. That great Cash offer wasn't so great.
Four offers on a home - seller selected what was considered the best. 10% Conventional buyer. It turned out that the 10% was being given to the buyer by their Dad who had not seen the house. Once he saw the home, he felt it needed too much work and stopped the purchase.
Two offers on a home - accepted the best offer and then buyers found out a home they really wanted a week before would accept their offer. They did not proceed with the purchase.
In each of the above, we needed to go back to see if any other buyers were still interested and this time we looked beyond just the price but also for motivation. Who really wants the home? Is the seller willing to give a little but take an offer from a more motivated buyer.
There is a saying in real estate that the first offer is usually the best. This isn't entirely true with multiple offers and a low inventory.
All of the homes described above successfully closed on the Second Best Offer!
For all of your Lehigh Valley Real Estate Information, visit www.lehighvalleyhomesonline.com