{"id":67202,"date":"2019-11-19T05:00:53","date_gmt":"2019-11-19T13:00:53","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=67202"},"modified":"2023-06-06T12:42:51","modified_gmt":"2023-06-06T19:42:51","slug":"win-bidding-war-on-house","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/win-bidding-war-on-house\/","title":{"rendered":"All-Cash Offers Triple Homebuyer Odds of Winning a Bidding War"},"content":{"rendered":"

Even in a housing market where bidding wars are on the decline, two strategies significantly increase a competitive offer\u2019s likelihood of success.<\/span><\/em><\/p>\n

When it comes to a bidding war, prospective homebuyers who offer all cash more than triple their odds of winning. That\u2019s the most successful bidding-war strategy tracked by Redfin, and its success rate is up from 2017, when an all-cash offer doubled a buyer\u2019s odds of getting an offer accepted in a competitive situation.<\/span><\/p>\n

Though the <\/span>housing market<\/span><\/a> has become less competitive since we presented the <\/span>most effective bidding-war strategies<\/span><\/a> in 2018\u2014just 13 percent of Redfin offers faced competition from January through September 2019, compared with 55 percent during that same time period in 2017\u2014a handful of strategies still improve a homebuyer\u2019s odds in a bidding war.<\/span><\/p>\n

These bidding war strategy figures come from an analysis of data on thousands of offers Redfin agents wrote on behalf of their homebuying customers in the last two years.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Bidding-War Strategies, Ranked From Most to Least Effective<\/b><\/td>\n<\/tr>\n
Strategy<\/td>\nImproves a competitive offer\u2019s likelihood of success by… (2018-Sept. 2019)<\/td>\nImproves a competitive offer’s likelihood of success by… (2016-2017)<\/td>\n<\/tr>\n
All Cash<\/td>\n206%<\/td>\n97%<\/td>\n<\/tr>\n
Waived Financing Contingency<\/td>\n20%<\/td>\n58%<\/td>\n<\/tr>\n
Pre-Inspection<\/td>\nNo significant gain<\/td>\nNo significant gain<\/td>\n<\/tr>\n
Waived Inspection Contingency<\/td>\nNo significant gain<\/td>\nNo significant gain<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u201cA couple of years ago, the market was much more competitive than it is now. Sellers might have had multiple all-cash bids to choose from, and offer price more often ended up being the determining factor,\u201d said Redfin chief economist <\/span>Daryl Fairweather<\/span><\/a>. \u201cNow that bidding wars are less common, an all-cash offer is often enough to make an offer the winning bid. Sometimes, financed offers fall through because the lender decides the buyer can\u2019t afford the purchase or the buyer is too risky a customer. Especially in a less competitive market, sellers value an offer they know isn\u2019t dependent on financing.\u201d\u00a0\u00a0<\/span><\/p>\n

The pre-inspection and waiving the inspection contingency do not significantly improve a competitive offer, showing no change since 2017. For homes facing competition, buyers will often begin by waiving an inspection contingency, knowing that any other bidders will be doing the same. Meanwhile, many sellers complete a pre-inspection in hopes that the homebuyer will then waive the inspection contingency and the sale process will be easier. Due to the varied use of these strategies, and their common prevalence in bidding wars, neither provide a significant competitive advantage.<\/span><\/p>\n

While offering all cash is not an option for most people, homebuyers can still increase their odds of winning a bidding war by waiving the financing contingency.<\/span><\/p>\n

\u201cFor buyers facing multiple offers, first ask your lender for an <\/span>underwritten pre-approval<\/span><\/a>, which helps ensure you\u2019ll be approved for what you\u2019re purchasing, prior to making an offer,\u201d said Seattle Redfin agent<\/span> Shoshana Godwin<\/span><\/a>. \u201cAfter that, discuss with your lender if waiving financing contingencies\u2014and possibly losing your earnest money\u2014is a risk you\u2019re willing to take. If you and your lender are very confident about the loan being approved, it could be a good option for making your offer more competitive.\u201d<\/span><\/p>\n

\"\"
Redfin Agent, Shoshana Godwin (middle), recommends always writing a personal letter to the seller.<\/figcaption><\/figure>\n

Every home sale is different. If you encounter a bidding war, talk to your local Redfin agent to come up with the most effective combination of strategies for you.\u00a0<\/span><\/p>\n

Methodology<\/b><\/h3>\n

To determine how each bidding war strategy affected the associated offer\u2019s odds of getting accepted, we used data on about 9,000 offers Redfin agents wrote on behalf of their homebuying customers from January 2018 through September 2019 who faced competition.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Which strategies will increase your odds of winning a bidding war? We analyzed 9,000 offers written by Redfin agents and found the answer.<\/p>\n","protected":false},"author":13087,"featured_media":67203,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[23,8],"tags":[30],"coauthors":[123],"class_list":["post-67202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bidding-wars","category-housing-market-news","tag-bidding-wars"],"acf":[],"yoast_head":"\nHow to Win a Real Estate Bidding War - Redfin Real Estate News<\/title>\n<meta name=\"description\" content=\"Which strategies will increase your odds of winning a bidding war? 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