How To Compete in a Bidding War for a Home
Bidding wars were common in the first half of 2022.
According to the National Association of Realtors, homes across the nation are getting an average of 4.8 offers per sale. The map breaks it down state-by-state.
To help you navigate bidding wars with multiple offers, an expert real-estate adviser is key. He or she knows what’s worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer.
Here are 5 things to keep in mind that could help you make the best offer possible.
5 Tips for Competing in a Bidding War
1. KNOW YOUR NUMBERS 🖩
Knowing your budget and what you can afford is critical to your success as a homebuyer.
2. BE READY TO MOVE FAST
Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes are selling fast, it’s important to stay on top of the market and be ready to move quickly.
3. MAKE A STRONG BUT FAIR OFFER
When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible.
4. CONSIDER PUTTING DOWN A BIGGER EARNEST MONEY DEPOSIT
An earnest money deposit is a check you write to go along with your offer. If your offer is accepted, this deposit is credited toward your home purchase.
5. NON-FINANCIAL OPTIONS TO MAKE A STRONG OFFER
Obviously price is a factor that a seller weighs, but a buyer’s terms and contingencies are also considered. Don’t forget about the pre-approval letters, appraisal requirements, and the closing time a buyer is asking for, too.