B's Blogs April 25, 2023

Insider Tips: How to win a bidding war in today’s market

Are you looking to buy a home? If so, you are likely aware of the competitive market we are in today. With stories from real estate agents and homeowners popping up everywhere about bidding wars and properties being snatched up within days of hitting the market, it can be hard not to feel overwhelmed. Whether this is your first time buying a home or your fifth, there are strategies that when used can give buyers an edge in finding their perfect new home without going over budget or stressing out too much. In this blog post, we’ll explore some tips on how to navigate today’s competitive housing market and come away as a winner.

  1. Take a deep breath and remember that it’s not a race – there will be other homes. When you are in a multiple-offer situation, know the maximum amount you will pay for the house. Do not let your emotions get the best of you in a bidding war.

  2. Home inspections are good for everyone in the transaction. In today’s low inventory market, I understand it’s tempting to not ask for one. You can keep the big ticket items in mind versus the nickel-and-dime items that every house will have as a result of being inspected.

  3. Research the area (have your agent show you comps in the price range you are looking to buy in.) This will support you in negotiating later down the road, and help set your expectations.

  4. Don’t go into your house hunt feeling pressured or rushed – it’s natural to want to find a place quickly but take your time.

  5. Ask for guidance from real estate agents, friends, and family who have gone through a similar experience.

  6. Get pre-approved for a loan before beginning your search so you know what you can afford. You will need a pre-approval letter when you submit an offer. A reputable lender will make a call on your behalf to the listing agent to back your financial ability to purchase when you are negotiating.

  7. Know what your maximum is for a monthly payment (principle, interest, taxes, insurance, any homeowner or condo association fees, lawn + snow maintenance, utilities). Keep this amount less than 28% of your gross income. This may not match the dollar amount you can afford to buy. An example is you qualify for a $500K home, but the payment for it is higher than you want each month.

  8. Do you have 20% for a down payment? If not, there is private mortgage insurance added to your payment. Your lender will factor this into your payment.

  9. Will you stay in your home for a minimum of 5 or more years? If you are looking to stay under 5 years, be sure you are buying the property with the ability to add equity to it.

As we’ve seen, the market has shifted dramatically over recent years and it can be difficult to keep up with the changes. You may think the current real estate market is complex and overwhelming but there is hope! Take small steps, do your research, and take advantage of any resources available to you, like getting a professional opinion on your home’s value through an appraiser or real estate expert. It may seem scary and confusing but if you know what you’re looking for and have help at hand, you can make strategic moves in this competitive housing market.

Let me help you determine your home’s market value and find success in buying or selling your house. I’m here to help – don’t hesitate to reach out!