Winning Real Estate Bidding War.
With for sale inventory down, prices rising and the uptick in mortgage rates bidding wars on homes are on the increase. According to on-line real estate brokerage Redfin in June 69% of homes faced multiple offers.
This weekend’s edition of the WSJ has a great article on Real Estate bidding wars and “How to Win a Bidding War” written by Molly Hensley-Clancy.
Real Estate agents give tips to help buyers get the best deal in bidding wars and it is not necessarily paying top dollar.
- Know the Market ~ stay up to date on last closing prices of homes sold in the area.
- Be realistic about the Price ~ Low ball offers not in this market; with multiple bids put your best offer in.
- Have a “Walkaway Number” ~ going into a bidding war have your walk away number and stick with it, do not get caught up in the feeding frenzy.
- Be flexible on other terms ~ with multiple offers be flexible on closing and move in dates, short term rent back to owners.
- Get Prequalified ~ have an up to date prequalified by your mortgage broker or bank, have all the paper work ready to go.
- Don’t dawdle ~ once you know what you want and find it don’t walk, run to it. The early bird catches the worm.
- Decide what you will do if the home appraisal is below selling price ~ will the buyer make the difference up, split it with seller.
- Position your offer as a backup in case the first deals fails.
- Connect with the seller ~ write an introducing letter explaining why the home would be a perfect fit for you.
To read the full article here is the link http://online.wsj.com/article/SB10001424127887324144304578624104001847008.html
David Popoff is a Connecticut license real estate agent in lower Fairfield County. He has lived and worked in the area for over 30 years and now reside in Darien since 2004.