<\/p>\n
Nine out of 10 Redfin agents say this is the most competitive real estate market they\u2019ve ever seen or close to it, according to a March survey of 326 Redfin agents. Supply is at a record low and buyers are competing fiercely for the homes that <\/span>are <\/span><\/i>on the market; prices are up 16% from last year.<\/span><\/p>\n Looking ahead, <\/span>rising<\/span><\/a> mortgage rates\u2013which haven\u2019t dampened homebuyer demand yet\u2013could help the market cool off a bit. \u201cThe housing market could shift in the coming months,\u201d said Redfin Chief Economist Daryl Fairweather<\/a>. \u201cBuyers should talk to their agents and keep an eye out for overpriced homes that have been sitting on the market for more than a week, as there may be less competition for those homes.\u201d<\/span><\/p>\n We\u2019ve asked Redfin agents around the country how they are helping homebuyers win in competitive situations. Below is a roundup of tried-and-true bidding war strategies, recommended by Redfin agents. <\/span><\/p>\n It\u2019s no secret that more money usually equals a better chance of winning a bidding war. Redfin agents suggest being as prepared as possible to enter the homebuying fray, with a clear idea of how much money you can realistically spend.<\/span><\/p>\n \u201cI advise clients to put in their absolute best offer, with no regrets,\u201d said Greg Mathers<\/a>, a Redfin agent in Walnut Creek, CA. \u201cThey should have no regrets if they win, and no regrets if they lose. That way, they won\u2019t feel buyer\u2019s remorse, but they also won\u2019t feel disappointed if they don\u2019t win the house because they\u2019ll know it was simply outside their price range.\u201d\u00a0<\/span><\/p>\n With that in mind, agents recommend starting with the following strategies:<\/span><\/p>\n Waiving the inspection and financing contingencies are common strategies, but in today\u2019s market, many homebuyers waive the appraisal contingency, too. That means the buyer commits to paying the agreed-upon price, even if the official appraisal comes in lower. It\u2019s a common strategy right now because homes are often bid up <\/span>way above<\/span><\/a> list price, increasing the likelihood that an appraisal could come in lower than the sale price.\u00a0<\/span><\/p>\n \u201cIt\u2019s important for sellers to know buyers have the cash to pay up and a deal won\u2019t fall through if the appraisal is low, which buyers can convey by waiving the appraisal contingency,\u201d said Illinois Redfin agent Christopher Prokopiak<\/a>. \u201cSometimes buyers should shuttle money from the down payment to cover an appraisal gap, if that\u2019s an option with their loan.\u201d\u00a0<\/span><\/p>\n In such a hot market, buyers shouldn\u2019t expect a counteroffer. While buyers may be tempted to make an offer below the asking price, that\u2019s not the way to win a home in a competitive situation. If an offer is too low, the seller will simply choose a different offer\u2013often without giving other bidders the chance to counter.\u00a0<\/span><\/p>\n Buyers should tour a home as soon as possible after it\u2019s listed, and definitely before an open house if there is one. They should consider submitting an offer <\/span>sight-unseen<\/span><\/a> if they can\u2019t get to the house fast enough.\u00a0<\/span><\/p>\n Many listing agents set a review date, often five days or so after a home is listed for sale, which is a deadline for offers and means the expectation is that the seller will review all offers at the same time. But offer review dates aren\u2019t enforceable, and sellers are technically free to accept an offer whenever they want. Buyers should consider submitting their best offer as soon as they know they want to buy a home\u2013sometimes, that can end a bidding war before it even starts. Still, keep in mind that every home sale is different and in some situations it\u2019s advantageous to wait for the offer review date. Talk to your agent to choose the best possible timing. <\/span><\/p>\n \u201cThe typical listing in my area may receive 14 offers within 48 hours. Time is of the essence,\u201d said Isabel Arias-Squires<\/a>, a Redfin agent in Fort Myers, FL. \u201cA buyer who is truly ready should not trust the deadline for submitting offers. They should be ready to submit complete, simple offers with as few contingencies as possible, along with the proper supporting documents.\u201d<\/span><\/p>\n Redfin agents report that having an open line of communication with the listing agent helps win bidding wars.\u00a0 That way, the buyer can figure out what the seller wants\u2013and the seller knows what the buyer can offer.\u00a0<\/span><\/p>\n “As a buyer’s agent, developing a rapport with listing agents is pure gold,” said Austin Redfin agent Chris Lefforge<\/a>. “I establish a personal connection with listing agents whenever possible, reaching out to them with questions and telling them a bit about my client’s story. I believe our chances of winning are higher when the agent knows you’ll be pleasant to work with and the deal will go through smoothly.”<\/span><\/p>\n Another advantage of connecting with the listing agent? All sellers are different, and every home-selling situation is different. Ask the agent what the seller wants. If it\u2019s important to the seller to rent back their home for two months after closing, offer that. If it\u2019s most important to close the deal quickly, offer a short closing window. <\/span><\/p>\n Many homes sell in a matter of days in this market\u2013perhaps they\u2019re listed on a Thursday with an offer review date the following Tuesday, and the seller accepts an above-list-price offer on Sunday. A record <\/span>45%<\/span><\/a> of homes had an accepted offer within one week of hitting the market as of the four weeks ending March 13.\u00a0<\/span><\/p>\n Redfin agents recommend looking at homes that have been on the market for at least 10 days with no offers. Buyers may be able to avoid a bidding war and pay asking price\u2013or possibly even under asking price\u2013and keep contingencies if a home hasn\u2019t attracted much attention. That doesn\u2019t necessarily mean something is wrong with the house; maybe it\u2019s overpriced or the seller just didn\u2019t market it correctly. <\/span><\/p>\n \u201cI recently had an unusual situation where my client was able to win a bidding war against two other offers with a low earnest-money deposit and we retained all contingencies,\u201d said Issaquah, WA Redfin agent Debbie Bacos<\/a>. \u201cI believe we faced less competition because the listing didn\u2019t have professional photos. The house was beautiful in person but didn\u2019t show well online.\u201d\u00a0<\/span><\/p>\n Most homebuyers have a pre-approval letter from their mortgage lender before they make offers on homes. But beyond that, it\u2019s helpful if your lender is willing to speak with the listing agent.\u00a0<\/span><\/p>\n \u201cSpeaking with a lender\u2013especially one who\u2019s trustworthy and local\u2013can ease a seller\u2019s mind and assure them a deal is likely to go through,\u201d said Barbie Edwards<\/a>, a Redfin agent in Southern California. \u201cYou can submit an offer that\u2019s very similar to another one, but if your lender took the time to answer the listing agent\u2019s phone call and talk through their financing questions, the seller may choose you.\u201d\u00a0<\/span><\/p>\n And a few final words of advice\u2026<\/span><\/p>\n Use unique strategies to make your offer stand out, such as releasing the earnest-money deposit early, and making it nonrefundable. Waive the appraisal contingency if you can. Don\u2019t expect a counter-offer; put in your best and highest offer right away. Consider putting in an offer early, several days before the review deadline, and maybe […]<\/p>\n","protected":false},"author":13153,"featured_media":74069,"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":[8],"tags":[30,35],"dashboard":[],"coauthors":[124],"class_list":["post-74068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-market-news","tag-bidding-wars","tag-redfin-surveys"],"acf":[],"yoast_head":"\nStart with the basics: Offer more money than the competition and waive contingencies<\/h3>\n
\n
Waive the appraisal contingency, too<\/h3>\n
Timing is everything<\/h3>\n
Build a relationship with the listing agent\u2013and figure out what the seller wants<\/h3>\n
Consider overlooked houses<\/h3>\n
Work with a communicative lender<\/h3>\n
Breathe<\/h3>\n
\n