How to Win in this Market
Multiple offers, bidding wars…you’ve seen it all when a hot property hits the market. We are back at full force to a very strong sellers’ market and an abundance of bidding wars. Some buyers may step back, but many want to get into the real estate market and buy their first home, move up, move down, or invest. Whatever the case, you need to know how to navigate and win when there are multiple offers present.
1. Get into the right mindset. Sellers are ultimately in control, so you as a buyer will have to prepare to pay more than the asking price or the last property sold on the street/in the building. If you are able to meet the monthly cost and have a substantial down payment, do not be afraid to overpay. Paying the premium is not always the worst case scenario – staying in a painful situation could be way more damaging to your future. Evaluate what’s more important and move forward with confidence.
2. Make yourself available during the day. Be prepared to change your plans and be as flexible with your time as possible.
3. Develop a strategy with your agent. If your Plan A doesn’t work, make sure to have Plans B, C, even D if needed.
4. Ensure that you are prepared to make a strong, no conditions offer. This includes being approved for the mortgage, having a home inspector available for pre-inspection if needed, having funds available in your account for the deposit (at least 5%), and having the deposit ready in-hands when going to the offer presentation (or even submitting the offer by email). You can often avoid multiple offers and bidding wars if your opening bid is strong and fair.
5. Focus on the things you cannot change about the property such as the location, street name, or school district. The rest – even the size of the home – could be improved later.
A Couple Remaining Tips…
6. Don’t get attached to every property you view or make an offer for. Believing in the sentiment that “what’s yours will not pass you” helps with this.
7. Work with the right agent. Choose an agent who has won many offers for his/her clients and who has been on both sides – both as a sellers’ and buyers’ agent – many times. You both have to be on the same page and work as a team. The right agent will help you with the mortgage approval, inspectors, showings, and any advice needed. Finally, the right agent’s approach, communication, and negotiation skills will help you win and buy the home of your dreams.
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