It’s almost prime home buying season. If you’re looking to buy in an area with low inventory and high demand (which is pretty much any area in Western North Carolina right now), you’re likely to run into homes for sale that receive multiple offers. The best way to lose in a competitive offer situation is to be unprepared for one.
Neighborhoods and communities with low months of inventory are those in which the supply of homes offered by home sellers isn’t sufficient for the demand from home buyers. If the number of months of inventory is less than six and an attractive, well-priced home comes on the market, a competitive bidding situation is likely.
If you find yourself in competition with other home buyers, do you know how to win a bidding war? You might think that the highest bidder will win every time, but that’s not always the case. Sometimes, new buyers and their agents don’t take advantage of these four strategies to maximize the chances of winning a real estate bidding war.
1. Turn in a clean, simple contract in the format preferred by the home seller.
If a seller is reviewing multiple offers, they will want to compare them side by side. The best way to help the seller do this is by submitting your contract in the format they requested. You may be scrambling to complete information on your end before a tight deadline, or before even more offers come in. But make sure the offer you turn in is complete, free of dramatic changes, and ready for review. After all, if there are many, many things about the contract that you don’t like, then this probably isn’t the property for you.
2. Make an offer that stands out numerically.
Sometimes, a simple visual trick will help your offer stand out on paper. Buyers often present offers like $200,000 or $205,000. By rounding up to the next highest number with a 1 or a 6 at the end of it, say $206,000, your offer will be differentiated from all the other offers.
3. Use cash or a loan approval program that offers buyer assurance.
If you have the funds available, a cash offer will almost always be the most attractive offer on the table. If you don’t, make an offer that’s as good as cash. A buyer assurance program helps make your offer almost as good as cash by having you completely pre-approved, minus an appraisal.
For more info, ask us about the Beverly-Hanks Mortgage Services Buyer Assurance Program.
4. Close as quickly or as slowly as possible.
Catering to a seller’s timeline can go a long way to swaying them toward your offer, even if it’s not the highest. Some sellers are ready to close quickly, while others may not have been ready for the amount of quick offers they received and want to wait until the school year wraps up, for instance. If you can be flexible in your personal schedule, and your finances are in line to move quickly (or slowly), a seller’s gratitude may outweigh their other considerations.
Above all else, don’t be emotional. Set a price, and don’t be upset if you lose. As unique as a property might be, there will always be other opportunities. You mustn’t be afraid of walking away.
Do You have More Questions about How to Win a Bidding War?
The best way to determine how competitive a community’s housing market will be is to consult with your Beverly-Hanks agent. Our professional, full-time real estate agents can show you how to use our Market Research Center to determine the number of months of inventory for each of the communities you’re considering.
All real estate is local. In order to make confident real estate decisions, it’s important to have timely and neighborhood-specific information. Contact us today to speak with a Beverly-Hanks real estate agent about buying homes and land in Western North Carolina. View all Beverly-Hanks real estate listings.