Here’s how buyers can come out on top in this competitive market.
In this crazy market, inventory is low, and competition is fierce. Bidding wars have been a theme of 2021, and today’s buyers are getting caught in multiple-offer situations all the time. Today we have some advice to share that will help you handle a bidding war and make the best offer possible.
First, set your emotions aside. It’s easy to see a home, fall in love, then be supremely disappointed when you don’t win the bid. To succeed in this market, you need to get your finances in order, research neighborhoods you’re interested in, and choose a real estate agent long before you’re ready to start your home search. A willingness to compromise is always crucial, and having a plan in place before you start looking is mandatory.
Another major factor is getting pre-approved for your mortgage. It not only shows that you’re a qualified buyer, but it will also allow you to act swiftly in this hyper-competitive market. Many listing agents prefer to work with local lenders who are familiar with the local market. We have a great list of local lenders who have worked with our clients that we’d be happy to share with you.
Waiving contingencies is also important. The majority of sellers see them as roadblocks to a sale. If you have to sell your current home in order to buy the next one, you’ll have to make a contingent offer. That won’t give you a very good chance of winning against other offers that don’t have one.
Ideally, you would have the home already under contract or sold and found temporary housing. Talk with your Realtor to find out what your best options are. The strongest offers waive all contingencies, but you may not be able to do that. That’s OK. Whether you have contingencies or not, it’s not always about the money.
In today’s market, you need to move quickly and be flexible. If you see a property you like that’s within your budget, don’t hesitate to submit a competitive offer. Try to craft an offer that meets your needs and has the least negative aspects possible for the seller. If you have a strong enough offer, you could still win even if you aren’t the first offer selected.
If you have any questions for us or planning on buying a home, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.