When to adjust your budget

Agents are strategically putting the asking price on their listings lower than fair market value.

By doing this the listing gets a lot of attention and gets multiple offers.

The property then sells for above-asking price, usually at fair market value.

Now that you know this info, be prepared to put in an offer on a home above your budget.

You could also look at properties below your budget and anticipate that the price will go up to your original budget.

Be the home buyer that is outbidding the others

Are you constantly being outbid when submitting an offer on a home?

Having a lower asking price is a widely used strategy by real estate agents to get multiple offers on their listing.

If you are seeing this a lot in your search area, adjust your budget!

Let's say your budget is $800k and you notice you have been outbid now a couple of times by buyers offering $25K above the asking price.

Adjust your budget down to $775K.

That way you can now be the one to submit an offer above the asking price.

You will now be the one who is outbidding all the other buyers by $25k.

Of course, have your agent do a market analysis on the property to make sure whatever amount you are offering is fair market value for the property.