Without a doubt, this has been my experience over the last six weeks. Our clients are advised to bid according to quantitative values but we will make allowances for a strong emotional connection to a property as well. But we will never advise anyone to bid recklessly just to "win" a best and final. In two recent example of "bids gone wild" I had to talk buyers in from the ledge. Yes, even the discerning clientele of The Burkhardt Group will occasionally get caught up in the frenzy which starts when you finally see something decent show up in your search and then attend the first Open House and it's more crowded than Pastis on a Saturday night!
So what do you do? You step back and take a good hard look at the property. I start by figuring out what it is worth based on comparable recent sales while making adjustments for condition, view, light and lay-out. In these cases I will also look at recent sales in similar nearby buildings, just to get a proper pulse on what is happening in the neighborhood as well. In cases where supply is thin and demand strong, often apartments will trade well above any reasonable conclusion you arrive at regarding value. At this point you have to factor in the emotional value. Ask yourself what kind of premium you are willing to pay in order to purchase this home? That is a conversation I have with my clients and everyone is different. This is not something that I can really offer advice on. I will give an opinion on what I believe will be "the number" and what I believe to be a fair emotional premium to pay without getting silly. Of course, my clients have something else going for them...the rebate. And used correctly, this can be a way to secure that dream home with the House's money (so to speak).