"Ask a Realtor" appears Thursdays. Have a real estate question for Susanne? Please email her at firstname.lastname@example.org, and she will publish and answer the questions of most general interest.
Q: Did I pay too much for my new property?
A: A fast market, mostly a seller's market can lead to multiple offers. Perhaps you've come through this type of offer scenario successfully and are now the proud owner of the home of your dreams! You are thrilled with your purchase but you realize that you did go well above the asking price. Was it too much?
These are the factors that may put your mind at ease:
You were probably in a holdback offer situation. In these marketing scenarios the house is listed at perhaps five to ten per cent under market value. This doesn't always result in the final price being way over asking. It depends on the house and the number of offers. The amount that these homes sell for over the asking price is from two to 18 per cent and probably 12 per cent on average.
Is the house a beauty, perfectly renovated? Does it feature a main floor family room, renovated kitchen and baths, a master ensuite bath, walk-in closet, beautifully landscaped etc. Or is it an outstanding condo? If so, I say this time there were many offers, next time there will probably be many offers too! It has just that much appeal.
Importantly, did you look at comparable sales with your agent before the night for offers? If so, you have a fair idea what similar homes or condos sell for, or have sold for. This analysis would have involved discussion with your agent. And this research/knowledge will certainly increase your comfort level!
Did you set an upper limit? If so did you stick to this price, or close to it? If the answer is yes, in the scheme of things, you're probably ok.
Are you likely to move from this new place anytime soon? Or do you imagine being there for a long time. If you plan to stay put and really enjoy this property and feel that it suits your every need, then you're okay. The amount over asking will even out over time.
And most importantly, did the price of the property appraise by the bank? If it appraised at very close to what you paid for it, then you've paid market value.
So relax and enjoy! The future will look after itself......