There's little doubt that the real estate market is heating up and in a number of cases, a property is so coveted that it sets off a bidding war and multiple offers. Here's how a Carrington Real Estate Services agent can help you get the home you want.
A bidding war is actually a delicate dance between buyers and sellers. All parties want as much from the transaction as possible. The trick is to find the sweet spot where each side is satisfied, a spot which involves more than price. While pricing is an issue which is crucial to both buyers and sellers, there are other factors that can tip the bidding process.
Design Your Offer
First, look at the deposit sought by the owner. Are you willing to offer more? In a bidding war with offers closely bunched, a bigger deposit may give you an advantage.
Second, consider the seller's needs. Would you be willing to have a quick closing, rent back the property for a set period or defer settlement as the owner prefers?
Third, have you made your best offer? Some buyers believe the strongest negotiating approach is to bid with a single best offer while others prefer to open with a lower bid and the understanding that there may be an additional round of bidding.
Fourth, can you demonstrate financial capacity? When looking at bids owners want to know that the purchaser can complete the transaction and not get bogged down in financing issues. Look at different ways you can boost your home buying power.
Fifth, the National Association of Realtors reports that in January 28% of all existing home sales were completed with all-cash offers. If you cannot offer all cash, can you provide a pre-approval letter from a lender?
Work With A Real Estate Agent
The world of bidding wars is complex. Like a chess match, there are moves and counter-moves -- not just with the owner, but with other prospective purchasers as well. When dealing with multiple bids, you gain a competitive edge by working with a savvy real estate agent. With the experience, expertise and negotiation power of a seasoned real estate professional working on your behalf, you can improve your opportunity to get the property.
Ultimately, you have to go with the approach that works best for you in terms of economics and personal finances. A real estate agent will help you get the house you want at a price you can afford. Speak with a Carrington Real Estate Services professional for more details regarding navigation of multiple offers.