c*********g
发帖数: 73 | 1 After you have located your dream home and is planning to submit a contract
to buy, you should consider which bidding strategy you are going to use to
compete with other potential buyers. In my mind, there are generally three
strategies to determine how you should put in your initial price regarding
the home you plan to buy. They are (1) regular strategy; (2) low balling
strategy and (3) over bidding strategy.
Before we talk about the details of the these strategies, let's cover some
very basic knowledge on how the listing price is generally determined. The
listing price for most homes is determined based on the foundation of
Competitive Market Analysis (or CMA). Let's assume the seller has a home for
sale.The CMA analysis basically shows the seller how much other homes in
the same neighborhood were sold in the past (such as past 1 year). Then it
lists out the difference between the seller's home vs other homes that were
sold, such as square footage, number of bedrooms, bath rooms, number of
parking space or car garages, kitchen upgrades, size of the lot, etc. Since
every home is unique in its own way, chances are good that the seller's home
is better in some of those parameters but not as good in others. If you are
in a seller's market (home price is generally going up since supply of
homes is limited) or the seller's home is better that most homes sold before
, the seller might want to price higher than most of the homes sold in the
past year. Otherwise, if you are in a buyer's market (home price is
generally going down since a lot of supply) or the seller's home is not as
good, the seller might want to price lower.
Now let's talk about what each of the strategy means and in what situations
you should use each:
(1) Regular strategy: this is the strategy where the bidding price is in
reasonable range of list price where 'reasonable' is determined by the CMA
analysis. Most people use this strategy to determine the initial price and
is probably is most commonly recommended strategy by most realtors.
(2) low balling strategy: this is the strategy where the bidding price is
significantly below the listing price. The longer the property has been on
the market, the better your chances of success are. You should only use this
strategy when the property has been on the market for at least 3 weeks.
(3) over bidding strategy: this is the strategy where the bidding price is
even higher than the listing price or at least very close to it. You should
use this strategy only when you want to close the deal with the seller
before other potential buyers come in and bid up the price ever higher.
Why you should never use low balling strategy for property that has been on
the market for less than 3 weeks? Why you should even consider over bidding
strategy to potentially 'over pay' for the property? Check out my other post
'Game Theory and Home Bidding Strategy' available at http://jingzhangrealtor.blogspot.com/2013/04/game-theory-and-home-bidding-strategy.html | n*******9
发帖数: 3244 | 2 房都强疯了，没时间看长篇大论的。上个删节版吧。
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【在 c*********g 的大作中提到】
: After you have located your dream home and is planning to submit a contract
: to buy, you should consider which bidding strategy you are going to use to
: compete with other potential buyers. In my mind, there are generally three
: strategies to determine how you should put in your initial price regarding
: the home you plan to buy. They are (1) regular strategy; (2) low balling
: strategy and (3) over bidding strategy.
: Before we talk about the details of the these strategies, let's cover some
: very basic knowledge on how the listing price is generally determined. The
: listing price for most homes is determined based on the foundation of
: Competitive Market Analysis (or CMA). Let's assume the seller has a home for
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