Bidding Wars..Frustrated Buyers

By
Real Estate Broker/Owner with Cam Realty and Property Management

Bidding Wars..Frustrated Buyers

With a low inventory of homes in the Clermont area, multiple offer situations have become the norm. This is not only frustrating to the buyers but the home sellers as well.

Homebuyers may think they will have an advantage if they contact the listing agent directly since they have a relationship with the sellers but I would caution you! Please keep in mind that;

-The listing agent represents the seller and look out for their best interest
-The buyers' agent represents the buyer and look out for their best interest

Frustrated home buyers get tired of several rejected offers and decide to wait for a later, calmer market to purchase a home but, is that a good strategy? None of us have a crystal ball that would give us an inside on what’s to come. We can make predictions based on history but we can never know for sure what type of real estate market we will see in the months to come.
With that said, the best time to buy is when you are ready! Don’t be discouraged, instead, keep pushing forward.

In a sellers’ market, it is best to get pre-approved if you are financing your next home, if it will be a cash purchase, be sure to have a letter from your lender to show proof of funds.

What should you do if there are multiple offers on the home you see yourself living in?

-Regardless of the market, no buyer wants to pay for a home than it is worth. However, that’s not what we are seeing in my local market. For instance, a home may worth $300,000, there are multiple offers ranging from below asking price to well over asking price with no contingencies. The fact is, not every buyer can afford to pay $20,000, $30,000, $40,000 over list price. Especially if they have been approved for a certain amount and don’t have extra cash to put down. In that case, my suggestion is to look at homes below your mortgage amount so you have some room.

-Make your offer as clean as possible. For some sellers, money isn’t always the deciding factor. An earlier closing date may put your offer in the winning bucket. Sellers concessions are another one that may cause your contract to be rejected by the sellers’.

-Preview homes as soon as you are able to and if you can see yourself living in, don’t sleep on it. Chances are, there will be others who feel the same way.

Lastly, don’t get discouraged and don’t give up. You may get a few rejections before your offer gets accepted.

If you are looking to buy a home in the Clermont, Minneola, Groveland, Mascotte, and Winter Garden areas, I would love the opportunity to speak with you. Call or text me at 407-929-1852, email bethatalay@gmail.com or visit www.WhereToLiveInOrlando.com

Bidding Wars..Frustrated Buyers





Comments (22)

Mark Don McInnes, Sandpoint
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

The ole 'Crystal Ball'  A tough one to put our finger on.  I am also advising buyers to be prepared to swing the bat a few times, and not discouraged if they don't get a successful hit right away.  Mark

Mar 26, 2021 11:49 AM
Beth Atalay

That's exactly what I tell my buyer clients Mark. 

Mar 29, 2021 01:39 PM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Beth - real estate, at any time, can be frustrating.  For each party as well as those who are attempting to help their side "win" in a difficult situation.  

Mar 26, 2021 04:58 PM
Beth Atalay

Hi Michael, I had homebuyers staying in a short-term rental while looking for a home. Things didn't work out as they planned, they had to find another short-term rental. In the end, it worked out but caused them a lot of frustration. Surely, this market will end at some point

Mar 29, 2021 01:38 PM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Not only is it frustrating for the buyers when trying to decide how to set up the offer, but also for the sellers that must decide correctly as to which contact has the best chance of finishing

Mar 26, 2021 06:22 PM
Beth Atalay

Hi Ed, what's frustrating is the fact homebuyers and sellers will get different answers from different agents.

Mar 29, 2021 01:36 PM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Beth- you've provided excellent advice to many of the frustrated buyers out there. The best thing they can do is hire the best local agent they can. And it's good for agents to educate their buyers, as you do, about the current market conditions. 

Mar 26, 2021 06:28 PM
Beth Atalay

Good afternoon Kathy, it is truly essential for home buyers to work with a local, knowledgeable agent they can trust from day one. It makes a huge difference

Mar 29, 2021 01:34 PM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Lots of great advice for those looking to purchase a home, none being more important than persistence.  If at first you don't succeed, try try again.

Mar 26, 2021 07:07 PM
Beth Atalay

Hi Raymond, when there's a will, there will be a way.

Mar 29, 2021 01:32 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Beth - like Alexandra I think you make a good point about decided to wait for calmer waters.  You just never know.

Mar 27, 2021 05:01 AM
Beth Atalay

Hi Grant, being in bidding wars is not for every buyer, sometimes, renting until the storm passes might be the answer.

Mar 29, 2021 01:31 PM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

You give such good advice and your clients are definitely lucky to have someone like you on their side!

Mar 27, 2021 05:17 AM
Beth Atalay

You're so kind Brian, thank you so much.

Mar 29, 2021 01:30 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Beth... I cut my teeth in real estate in NYC where multiple offers were not unusual... but what we've seen in my market this past year goes above and beyond anything I've seen in 28 years in this business! Tough on buyers, tough on sellers, tough on agents.

Mar 27, 2021 05:22 AM
Beth Atalay

You're so right Nina, our current real estate market is tough on everyone involved. It will level out, just don't know when.

Mar 29, 2021 01:30 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

I agree with your points, especially to look below the mortgage amount so there is room  and NOT to sleep on it.

Enjoy your day!

Mar 27, 2021 05:53 AM
Beth Atalay

Hi Kat, not all buyers believe it without experiencing it first hand.

Mar 29, 2021 01:29 PM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good afternoon and great post Beth! Excellent points to keep in mind

Mar 27, 2021 01:35 PM
Beth Atalay

Thank you Rocky.

Mar 29, 2021 01:29 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Beth every offer I have seen these days has been over asking price, and without any Seller paid cost.  The big issue is getting the property to appraise at an over listed price.

Mar 27, 2021 03:33 PM
Beth Atalay

Hi George, the past four closings I had were all over list price, two appraised under contract price but the buyers paid the difference out of pocket. I'm just curious to see how long this is going to last.

Mar 29, 2021 01:28 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Clients think we LOVE to have this situation. I do not. I prefer a fair market that both buyers and sellers have time to breathe when making these important decisions.

Mar 28, 2021 08:27 AM
Beth Atalay

I'm with you Jeffrey, I rather have a balanced market, not the extreme we are currently seeing.

Mar 29, 2021 01:27 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Beth,

It can be frustrating and disappointing but it is our job to encourage buyers and be optimistic.  It will always work out in the end. 

Mar 28, 2021 01:17 PM
Beth Atalay

Indeed Sheri, in the end, it will always work out.

Mar 29, 2021 01:26 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Beth I find it is frustrating not just for the buyers, but the buyer's agents. as well as the ethical and moral listing agents and their clients, Endre

Mar 29, 2021 10:29 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is a challenging time for many prospective home buyers.

Take care, be safe and have a productive spring.

Apr 02, 2021 04:41 AM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Beth,

Highly annoying for us too. We have to write and write with only the occasional bullseye. I hope there will be more inventory as spring is on its way, so the buyers spread out a little.

Apr 13, 2021 09:51 PM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Difference from Listing and Selling Agent ... I would love for you to say it again for the ones in the back.  So many people do not understand that at all.  Thanks for sharing and have a wonderful day!

Apr 14, 2021 05:05 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

We're seeing the same trends up here in Northern VA.  Buyers running around trying to get a listing agent to double end the deal.  They fail to understand the basics.  1) In VA we can't advise either party if we do dual representation 2) Even if we did, it's not about what is best for US that matters.  It is what matters to the sellers.  We don't factor in.

Apr 20, 2021 02:34 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Beth:

Seems it's a tough market everywhere, with multiple offers and over-asking sales, and homes sellling very quickly with dozens of showings. There's some great advice here...which includes working with a highly-qualified Buyer Agent such as yourself who knows the local market and can help buyers be successful, at least in some cases! The over-asking prices are a real challenge for those without a lot of extra cash.

Jeff

May 04, 2021 01:19 PM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Oh what wonderful advice, Beth! I agree with each of your points. I too, use my inner voice/gut as my crystal ball and I'm rarely wrong. The question is, will the buyers adhere to that inner voice advice or not?! THAT is the million dollar question!

May 25, 2021 01:57 PM