If you’ve been considering the purchase of a home, you may have hoped that higher interest rates would lead to fewer bidding wars. However, despite rates and the economy pushing some buyers out of the market, bidding wars are here to stay for now.
It’s understandable if you’re questioning whether multiple offers are the new standard and something buyers must contend with indefinitely. However, they may feel like the new normal; bidding wars are not recent. Supply and demand primarily influence real estate, and the ongoing scarcity of houses for sale significantly contributes to bidding wars.
Regardless of market conditions, buyers must be prepared as bidding wars can occur. Here are three critical strategies for buyers who might find themselves competing with multiple offers:
Demonstrate your ability to pay the price: Ensure you have a recent pre-approval from a reputable lender. If you’re paying cash, make sure you have bank records to prove access to funds.
Act promptly: Avoid letting a listing linger. Visit any house of interest as soon as possible and promptly submit an offer in writing.
Prepare to submit your best and final offer when the seller and their Realtor request it. Base your offer on the home’s value and the amount you feel comfortable paying. In addition, limit contingencies whenever possible, but never accept more risk than you can afford.
Although bidding wars are common today, they are nothing new. Act quickly when you find a well-priced home, because it may attract multiple offers in any market. If you want to avoid intense competition, consider neighborhoods with more inventory. You can also target overpriced homes or shop in less competitive price ranges.
Harb & Co blog
