Avoid Buyer's Remorse in Multiple Offer Situation...
After doing your home research, you looked at newly listed homes, viewed floor plans and model homes, and drove through various neighborhoods and school districts, then you found a home you could see yourself making memories. Then you made an offer, and—ta-da!—you’re now under contract and soon to be a homeowner! When you first signed the offer, it was one of the happiest days of your life…then multiple offers... now you feel like things are out of control and driving off a cliff ala Thelma and Louise?
Well, next comes buyer’s remorse if you won the bidding process... you begin to think was I too high, am I overpaying, should I just cancel and begin again? The simple answer is no and here is why. In a Seller's market the demand is high and owners have the advantage in the negotiation process. They see all the offers, decide what the best offer is for their needs, and sometimes its terms like a quick closing or no inspections or no appraisal contingency that seals the deal for the owner. So take a deep breath, do a few yoga poses and relax. It’s going to be okay. Everyone goes through buyers remorse and second guessing their initial decision. Statistics are on your side: 74 percent of first-time buyers say they like their new home better than their previous residence, and 67 percent of repeat buyers like theirs better.
Then you remember you have three days to change your mind and cancel the contract. Right? Wrong! No such law exists in FL for a home purchase... only a condo. So hire an experienced Realtor, like Andrea Simon, who can assure you have a cancellation clause written in the contract to protect you if you want an out clause. Generally, a buyer can cancel only for failure to qualify for mortgage financing, appraisal issue, or inspection results but the contract must define what contingencies you have available and the timelines to do so.
The best way to prevent (or at least mitigate) buyer’s remorse is to prepare yourself in advance, long before you ever sign on the dotted line. Write out the pros and cons. Do your homework. Then relax and enjoy your new home. Now when you win the bid in a multiple offer process, you know your offer price was based on what you determined is in your best advantage to move forward. I have seen too many buyers make an offer only to withdraw it upon multiple offer situation for fear of a "bidding war". As the agent involved in many multiple offers, sometimes that offer was the best offer and both the buyer and the seller missed out.
Florida is a fast paced market with many moving from big cities to the Space Coast area with beaches, tech jobs, and Orlando attractions. Multiple offers are common and if you understand the process the seller will review all offers and then decide, then you proceed as if no other offer. If you don't win the bid the first time, just keep trying and you will eventually find the perfect home at the right terms. Ask you agent what the list price to sales price is for the area over the last few months and it will give a good indication if offers are going well above the list price. Happy House Hunting!