Pros and cons of pre-emptive real estate offers

In communities of the residential housing market where inventories remain low, some buyers resort to [tag]pre-emptive offers[/tag] in an effort to avoid [tag]bidding contests[/tag]. A pre-emptive offer is one that’s made either before the property hits the market, or before the seller’s designated offer date. The Millionaire Real Estate Agent: It\'s Not About the Money...It\'s About Being the Best You Can Be!

There are pros and cons to this strategy. As a buyer making a pre-emptive offer, you’ll never know if you could have paid less if you’d waited to see the market response to the listing. On the seller’s side, you’ll never know if you could have sold for more if you waited until your property was fully exposed to the market. You may wonder why a buyer would have any interest in making an offer for more than he has to, particularly in the current slowing market. Pre-emptive offers are popular with buyers who have lost out in multiple offer competitions, usually more than once. Some buyers feel it’s worth it to pay more if it means that their home search is over.

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