4 Points to Consider In a Seller’s Market Bidding War
Thursday Feb 18th, 2021
High demand for listings with a low inventory of for-sale properties basically sums up a seller’s market. Right now, with low-interest rates in mortgages and changes in lifestyle due to the pandemic - more people are hunting for homes and usually have fewer options to choose from. That is why, when a home buyer finds their dream home in a seller’s market - the possibility of a bidding war is highly likely. Learn the basics of a bidding war and how to navigate this situation during home buying.
A bidding war is a situation wherein a listing gets many offers to purchase the property. This situation is certainly advantageous for the home seller - their listing price can increase more than they expected. However, for the home buyer, it can be nerve-wracking to not be able to win the bidding war to get their dream home.
There have been some established rules for realtors in terms of starting and managing bidding wars which potential home buyers should respect. Homebuyers can have some points to consider during a bidding war.
Budget and property worth. Stick with your budget and balance it with the value of the home you choose before giving out a firm offer. Check your numbers - including your pre-approved mortgage and market statistics, and home valuation. Consult with your real estate agent to make sure you know how much you can afford and the actual value of the home valuation of the listing you are making a bid on.
Aim for a clean offer. Try to lessen your conditions and go ahead with satisfactory home inspection results. Be flexible in your closing dates and inclusions and you might be able to attract the home seller to accept your offer.
Avoiding the bidding war altogether. With a pre-approved mortgage, find properties that are just about to go in the MLS and give a firm offer to the home seller before it goes on the market.
Try to buy a house in the off-season. Listing during the winter months or before the frenzy of spring and summer might work best for home buyers. At this time, low demand means more supply - increasing your chances of your offer getting accepted with less competition in a buyer’s market.
Most homebuyers might be wary of this current seller’s market but with the correct guidance and professional real estate services - a home buyer will get the best listing he can get. Consult with JoAnn Visaretis for her experience in handling bidding wars and making a home buyer win the bidding war.