5 ways to win a bidding war for a hot property

Real Estate | 13 Oct |

Large kitchen, big backyard, in the neighborhood you want – it is your ideal home. It is also the dream home of many other families. Phoenix metro is ranked in the Top 10 best real estate markets in the country. Sellers are enjoying record-high selling prices, but many buyers are struggling to get their offers accepted and finding themselves in a bidding war when buying a house.

There are several ways to ensure you are prepared to make an offer that can lead to a successful transaction and close the door to your new home.

Know Your Finances 

Before starting the house-hunting process, get prequalified. It shows that you are a serious buyer and gives you a firm foundation to know the highest dollar amount you are comfortable offering. Having this information in your pocket can make you the more attractive buyer if there is a bidding war and there are multiple offers. 

Cover the Gap

Offer appraisal gap coverage. In a seller’s market, with offers coming in from all sides, a buyer may make a generous offer over the asking price. Adding on an appraisal gap coverage makes the offer stronger because the seller knows they will get appraisal price plus the additional gap coverage. It also eliminates extra paperwork and negotiations which could lead to the deal falling through.

Make a Clean Offer with No Contingencies 

To help sure up the offer and expedite the process, make the best offer you can without any contingencies on the home inspection. Inspection contingency allows the buyer to cancel the purchase or request the seller make repairs during the inspection period. By waiving the inspection contingencies the buyer agrees to buy the home as-is. Doing this can be risky but in a high-stakes game, taking a gamble may be needed. 

Along these lines, be flexible with closing dates. It may be an inconvenience to you, the buyer, but accommodating the seller’s requests and timeline can lead to a win. This can go either way – shortening the closing period or allowing the seller more time in the house if need be. 

Get to Know the Homeowner 

Write a personal letter and express your interest in the house and why you and your family would love to own it. We are all human and sometimes taking a thoughtful, caring approach can make a big impact especially since buying and selling a home is such a personal and can be an emotional transaction. 

Stack Your Team

Work with a smart and experienced agent who knows the ins and outs of the industry. At Homie, experienced local agents work with home buyers bringing a smart understanding of the Phoenix market and can give these types of recommendations and others to first time home buyers or a seasoned vet. As the real estate market continues to change, having a knowledgeable, loyal, caring agent that has your back will help you win any bidding war or real estate war. 

Homie is a real estate technology company changing the way real estate is bought and sold by eliminating high fees and commissions. The company simplified an outdated and overcomplicated process through a combination of technology and full-service real estate agent support. Homie is the No. 1 listing brokerage office in the state of Utah and growing quickly in the states of Arizona and Nevada. With real estate, home loans, closing services, and insurance, the Homie Tech family is making every aspect of buying and selling a home simple, affordable, and enjoyable. Finally, the way modern real estate should be. To learn more, visit: www.homie.com.

 

Wayne Graham is the head of real estate for Homie Arizona.

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