Expectations are everything right now in this market. If you are a first-time buyer, it may not come as much as a surprise since everything is newer to you. If you are a previous buyer in the past 5 years or so it may come as a shock to see a home go 20k over the asking price.
Before starting your housing search I recommend to my clients to expect the price to go over the listing price and that it may take 3 to 5 offers to get an offer accepted. It is important to accept and be aware of the market conditions to avoid pitfalls of disappointment when offers keep falling through over and over again.
If expectations are set correctly, you can still find the home you love.
Be prepared to act quickly in this market if there is a home you love, prepare action with your real estate agent and make sure to pay attention to the information they send you about offer due dates and suggestions. Make sure to be pre-approved, and know exactly how much cash you have to work with.
Set Your Ceiling
Create a number in your mind of how high you want to go above the listing if at all. A practical example of this could be “if the price goes over $100 per sq foot, then I will say no to the property”. If you do this it is not up to your emotions instead, math and numbers will guide you where to go.
Pick A Good Realtor
It is important to find a Realtor that is willing to go above and beyond and put the energy and work in to find you a property in this market. The reality is it’s a tough market for Buyers Agents right now and if they are not willing to work hard to find you a property, you're not going to get the property.