To deal best with the multiple bidding scenarios there are some smart ways to prepare yourself
Cervone Deegan + Associates knows that if you’re in the market to buy a home today, you already know that the housing inventory is quite low. As a buyer, low housing supply along with high buyer demand and attractive rates means that you should be prepared to navigate a competitive market where homes sell quickly and get multiple offers.
In a competitive bidding situation like this, being able to do all that you can to get ahead of the competition is your key to getting the home. That’s because when you find a house and submit an offer, it’ll most likely be up against a few strong offers from other buyers. In fact, according to the latest REALTORS® Confidence Index from the National Association of REALTORS® (NAR), homes nowadays are getting an average of 3.9 offers on them.
In order to deal best with the multiple bidding scenarios that are so common, here are some smart ways to prepare yourself.
Solidify Your Budget
Firming up your budget is important for any home purchase in any market but today’s landscape is a little different. With most homes selling for more than the list price while undergoing a bidding process it is even more important to know your price ceiling so you don’t let emotions get the best of you. Also, where most homes are going for some percentage over asking price you should consult with your agent for what the local trend is and how that relates to the home of interest so you can make the strongest offer possible.
The best way to be able to act quickly is to be prepared. This means that you will need to have all of your important information completed like a prequalification letter and having some strong market knowledge under your belt. Being armed with all of this will let you know you have found the right home, know what to offer and craft a strong offer in a timely manner.
Submit a Strong Offer
When writing an offer that is up against others you will of course want to put your best foot forward. Consult with your agent and use their expertise so that you make your offer as attractive as it can be for the local market. Consider your options like being flexible to different closing dates that may be attractive for the seller as one idea. Make sure that you don’t forfeit anything that is too important to you like a home inspection. Your objective is to get the house but not regret the purchase once it's yours.