With home buyers finding themselves in bidding wars all over the country, how can you help make sure they aren’t outbid every time?
In 18 states, 69 percent of homes on the market fielded multiple offers in June, according to real estate brokerage Redfin. Bidding wars are reportedly most common for bargain-priced homes where home buyers are competing with investors.
The Wall Street Journal recently highlighted some of the following tips for buyers who want to win a bidding war without overpaying.
Don’t lowball an offer: “Make sure your initial bid isn’t insulting,” The Wall Street Journal reports. Submit your maximum bid first rather than try to base your offer on what you think other buyers will do. Client too often lose a home to a higher bidder when they were willing to pay a higher price from the beginning.
Set a “walkaway number”: At the beginning of their real estate search, have your buyers pick the number that is their absolute maximum. This will help them avoid getting caught up in the competition if they face a bidding war. This maximum limit should include the amount they can get from a lender, plus some extra cushion. That will ensure they are taking into account insurance, taxes, and other costs of home ownership.
Be flexible: Being flexible — such as negotiating closing dates or offering a “rent back” to sellers — can help set your buyers apart.
Get prequalified: If your buyers need financing for their home purchase, they need to know how much a lender is willing to give them. Getting prequalified shows that a buyer has the ability to close.
Be the backup: If your buyer loses out in a bidding war, you can still communicate to the seller that the buyer is still interested in purchasing the house — even if another bid has been accepted. A transaction can fall through in the final hours, which would allow your buyer to step in.
April Partida is a Professional, Experienced and Results Oriented, Top Virginia Beach VA Realtor committed to meeting your needs.
April has distinguished herself as a leader in the Virginia Beach Virginia real estate market. April assists buyers looking for Virginia Beach VA real estate for sale and aggressively markets Virginia Beach homes for sale. April is also a Short Sales and Foreclosures Resource Specialist (SFR). Avid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure.
You can reach April at 757-227-1777 or by email, firstname.lastname@example.org.