In a real estate cycle where inventory is limited buyers have a fear of paying too much especially when they are in multiple offer/counteroffer situations. It is a genuine fear and we, as agents, take note of and address this with our buyers.
In a multiple-offer scenario, our buyer's worry emotions are overtaking rational thinking. Multiple bidders always want to avoid the so-called “winner’s curse” of over-paying. Why is this important to identify and discuss this with us? Because even the toughest, wealthiest buyers' greatest fear is that someone will realize that they paid more than someone else for the same or similar house.
Data is important in evaluating a price you are willing to pay, so as a buyer, you should identify good reasons for why you assign a higher value than other bidders to acquire the property.
We assist our buyers with substantive insights about the data including not just the closed sales but also insight on properties that are in escrow because we are in a very fluid market environment. We work with our buyers to evaluate other unique and specific aspects of the property including location, amenities, finishes, upgrades, views, etc. This is where our clients lean in on our experience and expertise to provide curated insights about the specific property under consideration.
In our current real estate environment, knowing the stats and data points is important but understanding the nuances of the property and how those relate to your long-term goals need to equally be taken into consideration in multiple and overbid negotiations.