Three Ways to Win in a Real Estate Bidding War

The current real estate market offers a limited inventory of homes. With low interest rates, buyers are ready to take advantage of these great rates! This situation sets up the perfect storm of “multiple offers” on the limited inventory. Here are three ways to win in a real estate bidding war:

1. Get pre-approved with your lender of choice - and you can even go a step further and get the full approval! According to *Keeping Current Matters, a recent survey indicates that only 52% of active homebuyers get a pre-approval before they begin their home search. Buyers that have a pre-approval or approval letter from their mortgage company shows sellers that you are a serious buyer! With the mortgage and title industries being swamped with work because of historically low interest rates, the process may take a little longer - so do your mortgage company research and comparisons early to give yourself a leg up over the other buyers you may be competing with when you find the perfect home.

2. Present your best offer! When a highly competitive real estate market is at play, time may not permit to go through the typical “back and forth” negotiation with a seller. Many sellers will set a deadline in which they will review all offers and will make a decision within a set period of time. So it’s super important to bring your highest and best offer as soon as you find the home of your dreams.

3. Act fast - if you find the perfect home!! According to *Keeping Current Matters, for two consecutive months, homes have been sold very quickly. Shopping around for your dream home and “sleeping on it” for a night or two before making a decision may cause you to lose the home completely. If you love the home, then it’s likely someone else does too - so act fast! Have your game plan together early so you don’t miss out! Your realtor can assist you in coordinating this “act fast plan” so you are prepared!

The bottom line here is that the current housing/real estate market is strong right now and buyers are scooping up properties as they become available. Talk to your local real estate professional to ensure you are ready to compete and win!

Source: *Keeping Current Matters