There's no denying it - we're in an incredibly hot housing market. That's great news for the seller. But for the prospective home buyer, they could lose their dream home if they don't act fast.
"Right now, within just two or three days of being listed, houses are going under contract," said Kazantzis Real Estate Owner and Broker Andrea Kazantzis. "To put that in perspective, a year ago, a house would typically be on the market for 45 to 60 days before it went pending."
More than once recently, Kazantzis has listed a house on Friday and by Sunday had it under contract, with an offer over asking.
"While this market is a seller's dream, it can be discouraging for the prospective home buyer," Kazantzis said. "But there are steps you can take to make sure you don't miss out on your dream home."
With a housing market as hot as this, chances are high that buyers will end up in a bidding war.
Kazantzis said the buyers who are ready to get a deal done quickly are typically the ones who come out the winner in a multiple-bid situation, as are those who are able to make a bigger deposit and who may be willing to forego an inspection.
"Get your offer together with your best deal upfront. Don't put in a low offer, hoping the seller will counter," Kazantzis said. "By taking that route in this market, you may just take yourself out of the running."
Here are some other ways you can win a bidding war on a house:
- Make an All-Cash Offer - If your bid doesn't rely on financing, the seller will know that the deal won't fall through due to mortgage troubles.
- Waive Contingencies - Sellers may opt for the buyer who makes a clean offer over the buyer who has a list of stipulations, like selling their current house.
- Include an Escalation Clause - By adding this clause to your bid, you can ensure you win the bidding war without paying more for the house than you need to.
- Get Pre-Approved for Financing - By including your pre-approval letter with your bid, you are letting the seller know you're serious about buying their home and will likely be able to get financing. Unlike a prequalification - which is a loan estimate base on verbal confirmation of your income - a pre-approval is a precise loan amount based on W-2s, bank statements, and other documents.
Kazantzis Real Estate has a team of agents who are experienced in winning the bidding war. If you're looking to buy, or sell, contact us today.