Sometimes things surprise even us real estate experts.
Last week a woman who was buying a home looked at a house for sale just outside of Pittsboro in Chapel Hill, NC. She found the home that she wanted. It was listed at $148,000. Knowing that the seller was about to receive multiple offers I advised her that she would need to bid $163,000 in order to get a chance at winning it. To my surprise she insisted on bidding $168,000.
The bid for $168,000 was accepted and the buyer and seller were thrilled. It is great when everyone walks away happy.
After the deal was done I asked the selling agent if the buyer could have gotten by with a $163,000 bid and I was informed that even at $168,000 she barely had the highest offer.
Did I mention that the Triangle real estate market is HOT right now?
As of April 2016 the market keeps getting hotter and hotter. The demand is incredible and there does not seem to be enough homes on the market to meet the demand. It is a perfect storm.
How much someone should bid on a home for sale is a very tricky question. The appraisal value of the home for sale is a factor in how much financing someone can obtain and how much of a down-payment they are able to make.