Have you ever made an offer on a home, was outbid, and was upset when you learned the price it sold for?
“Darn it! I would have paid that!”
Well, that is your regret price a.k.a. the amount you would have paid before you felt regret. The same goes if you hear the price and aren’t upset.
“I would have never paid that!”
There’s a point when a dollar amount no longer fits your level of satisfaction. Above that, you’re thankful your offer wasn’t accepted. Below that, you’re regretful. It’s a fine line and I’m almost hesitant to use the word “satisfaction” as it implies a fulfillment of desires when not much is fulfilled when you lose out on an offer.
In today’s real estate market, where inventory is low and bidding wars exist, it’s important to know your regret price. It will be different for every property that ends up on your Top 3 list, but you need to seriously consider it. Low-balling to see how much money you can save purchasing a home isn’t always the answer, because you could offend the seller to the point of rejection or be outbid. This is where your agent’s expertise comes into play.
Real estate agents aren’t just door openers. They exist to make sure you’re protecting your best interests and making the most informed decisions during negotiations. They use their training, experience, and knowledge to help you analyze the value and potential of the homes you’re interested in, as well as help you over the hurdles that exist before closing (inspections, paperwork, financing, etc.). Their expertise goes beyond showing homes.
Bottom line, you have the final say on offer price, but your agent can tell you what’s reasonable. Regret is all in your mind and only you can decide what determines your regret price…but you must determine it or you’ll be kicking yourself later.
If you have any questions about buying a home in the Wilmington area, give us a call or send us a message through our Contact page. We’re never too busy to help!