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 accessibility 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.
Make a strong, competitive offer by being prepared to provide your best and final offer when the owner and their Realtor request it. Base it on what you believe the house is worth and how much you feel comfortable paying. Additionally, aim to keep contingencies to a minimum without taking on more risk than you’re comfortable with.
While bidding wars may seem like the new normal, they are not a recent phenomenon. Buyers should always prepare and act quickly, as they may encounter a bidding war in any market where a house is appropriately priced. Exploring areas with more supply, targeting overpriced homes. Consider looking at less in-demand price ranges, which may offer potential solutions for those seeking to avoid bidding wars altogether.
Harb & Co blog
