We had a fixed limit for how much we were willing to pay. So, we only looked at places priced below that. When we found one that suited our needs and wishes, we just bid what we were willing to pay, which was $25k or 11.8% more than the asking price. Two weeks later, townhomes in that development were all listing for what we paid or more. So, had we waited much longer, we'd have effectively been priced out of the market.
It only took us three weeks, which is a much shorter time than most buyers are taking to have an offer accepted. It was pure strategy. The realtor we used wasn't sure about our plan, but was pleased and surprised when it worked. While it's a good idea to take suggestions from realtors, you shouldn't rely solely on their advice if you're a buyer in a market like this. You have to look at everything and have a maximum amount you won't exceed. Looking for houses listed for about 10-12% below that maximum is the secret. That way, you can bid your maximum on a place you like and pretty much guarantee that your offer will be accepted, I think. Worked for us.
That was the first and only offer we made on a house we were shown. The rest, we couldn't see paying that much for. They still sold for that much, though, in the end. It's a nutso market, for sure. So, if your maximum is $240k, only be looking at places in the $205-220 range, and be willing to make an immediate cash offer, or you'll be outbid by someone willing to pay above your maximum. If you're thinking about an FHA or VA loan, you're not going to have much luck, either, since those loans take a long time to get funded.
A month after our offer was accepted, the price range has jumped already to a point that would have made finding what we wanted among the limited number of homes on the market almost impossible at our maximum price point.
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