You viewed a Boston luxury condo before the first official open house. You want the condo and are ready to make an offer, but the sellers and listing broker have set a date when all offers should be submitted. Should you seize the day and submit an offer before the offer date.
Its common for buyers to make pre-emptive offers when they want to avoid competing with other buyers especially in the Boston luxury condo market.
Though submitting offers early have their benefits, there are definitely a few drawbacks. Before you rush out to write that offer, here are some points to consider:
You might be overpaying. Your pre-emptive offer has to convince sellers that they won’t get a better deal from someone else. In most cases—particularly in Downtown Boston, Back Bay and Beacon Hill where inventory is in short demand at this time of year. Most luxury condo sellers will be hesitant to accept a preemptive offer that have numerous and lengthy contingency times and below asking price. If you’re planning to pay in cash, that’s a big advantage. But even at that, you’ll need to be strong on the sales price.
Your offer may be shopped around. Once your agent presents an offer to the listing agent, he or she is supposed to discuss the details of that offer with only his or clients. However, there is a chance that agent could talk to other buyer agents or buyers who have already also expressed interest and suddenly, the playing field is a bit more level. And if your not paying cash you may find that a cash buyer is submitting a purchase contract for roughly the same price you offered.
To learn more about the best methods to submitting an offer contact Robert Veek at 617-420-1401.
Updated: 1st Quarter 2018