After nearly 3.5 years of searching for a house, my adventure has finally taken me somewhere I've never been - the inspection negotiation phase.
Over the years, I have bid on numerous homes. I've used a variety of techniques in hopes of winning a bid....
- Completing a pre-inspection - although potentially a useful technique, this methodology can become quite expensive in not time flat. The one time I decided to complete a pre-inspection, my bid was coming in 40k over the ask.
- Using escalators - although deemed the "safe" approach to bidding higher on a home, I really don't like this technique. If I want the house, I prefer going in with the best offer possible. Plain and simple.
- Bidding high - Know the value of the house and what you're willing to pay, then go for it.
The Seattle market has been a seller's paradise for as long as I can remember. It's not uncommon for a house to go on the market and by the end of the first day have about a dozen buyer's all chomping at the bit.
I think I've experience every possible type of loss possible:
- Coin toss - you tie someone else for the winning amount, so the seller decides to flip a coin to pick a winner
- Single man effect - some folks simply do not like to sell their homes to a single man. This becomes especially apparent if the runoff is between you and a "cute" couple. The couple wins every time even though the single man probably has better finances.
- Plain old fashion out bidding - I have lost bids by a 1,000 dollars. I have also lost bids by 30 grand (even though I raised the price by 40 grand myself).
Everyone claims the house bubble has hit... everywhere but in Seattle proper. The Seattle market is still hot and it is only getting hotter as we roll into spring.
On February 10th, I hit a new milestone in my house search. I finally won a bid. I used the simple strategy of bidding high. It was was a multiple offer situation. I didn't want to use an escalator; instead, I chose to bid 15k over the ask.
I won.
It was hard to believe. After so many years and attempts, I was pretty much convinced that my real estate agent would call at 9p with the same old news... "It was close, but someone else won the bid".
I'm in new territory.
How cool...