Saturday, September 22, 2012

‘Sharpen’ Your Bid.

“I have an idea: given we have been beat-out on the last three offers submitted on homes you absolutely loved, I think it is wise to make an offer of $10,000 above the highest offer received, not to exceed $700,000 on the next property you find and absolutely adore!”  These were the words and strategy I shared with my client after being out-bid by the market during an eight month search for a place to call home in San Francisco.

With inventory (supply) low, the Tech sector / IPOs ripe, and interest rates at historical lows, demand for property has grown exponentially as the year has progressed in 2012.  In turn, all-cash and incredibly sophisticated Buyers are left by the wayside, unable to compete in a frenzy of bidding wars taking place over home ownership.  Luckily, this is where I come in. 

See, I employ a strategy called a ‘Sharp Bid’.  It is an old school strategy, but works in today’s market if executed properly (and with the right tact).  By submitting a Sharp Bid, you are ultimately telling the Seller you will pay an ‘X’ amount over and above the highest offer received, thereby trumping the ambiguity often found in your competition, and winning the property.  Do you pay over the asking price?  Yes, nearly always; but, this is the nature of the current market dynamics in San Francisco, which begs the approach if you want to own an appreciating asset in this beautiful City. 

I am happy to discuss the various nuances found with submitting a Sharp Bid, as there are several pros and cons to consider before going this route.  Feel free to contact me anytime.