1) Never ever go beyond your comfort zone in a bidding war. Bidding wars are emotional and may take a toll on you. You know for sure that an apartment is good if other people are interested in it. But there is no way of finding how much more other people bid. So it is best to be firm that you will not go beyond your price range. You should at least have 2 years of monthly interest and common charges in your account after the bid price. It is a depressing process, but in the long run it helps to be firm. We placed a bid for one place that I fell in love with. There was a bidding war, we lost the bid, and I was very depressed. However, a few months down the line when I got over it and the place was sold, I found out that it sold for $80K more than asking. I knew that we would have NEVER been able to meet that price. Not only that, but when I took a look at the floorplan, I saw that compared with my current place there were fewer windows and less natural light. Natural light is the number 1 factor for me, and somehow I loved that place so much that I had overlooked it. I actually felt good that my husband was firm. Having said that, if you are positive that a place is right for you, and you have to go a little above asking while still staying within your comfort zone, then go for it. But of course you have to be comfortable with the price and make sure never to regret it. I have seen a few people do that and they have not regretted it.
2) Trust your gut, if it has been right in the past. My gut has always been right in the past, and anytime I have gone against it, I have regretted. I decided to wait it out and not get impatient till my gut said that a place was right for me. That paid off!
3) Ask questions. Ask the seller’s broker as many questions as you can. Sometimes they reveal information that is helpful in the long run. Trust me, you never know what you can uncover. In one situation, a seller’s broker told us that the sellers are two sponsors who do not get along well and will accept any price for the apartment just to get out of the investment. Obviously that means we could start with an insultingly low bid, and the sellers would not be in a position to pass that up without negotiating. Too bad I hated the place so much!
4) Be smart. Obvious, isn’t it? Its your money, why wouldn’t you be smart about it? When you go to see a place, DO NOT rave about it. Play hard to get. Mention a few negative things (concerns) subtly. The seller’s broker will communicate everything to the seller. Then when you place a bid you can negotiate better. If you rave about it, the seller knows that you will accept it at any cost and may not negotiate much. Make it seem as if you know the market and have seen some places, and hence are in a good position to know the market value of the apartment. If the windows are covered, open the blinds so that you can see the view. In a few places that I saw, blinds were usually down to block out a bad view or a dark exterior. However, the apartment was so well lit that you would not really notice it. In one apartment, we unsuccessfully tried to uncover the blinds – they moved from top to bottom (a first for me). The seller’s broker ignored us. We asked her to help us and she did. Later, she tried to justify the bad view to us and other families around us. In her words, “this is the only negative thing about the apartment.” Obviously, the blinds were down to throw off the buyer. Hence, do not hesitate to ask the seller for help – you have a right to see the view.
5) Do your research. Do your research on the apartment. Be an informed buyer – that will help you make the right decision on your purchase price.