In a real estate market where supply is low and demand is high, bidding wars aren’t uncommon. The Realtors are seeing these frequently in the Fairhope/Daphne/Spanish Fort housing market. While there’s really no such thing as a “winner” in a bidding war (except the seller), there are a few tips to consider when you are in this situation.
Before you place your bid
1. Make sure you know your limits financially. Be sure to talk to your lender and have your financing lined up. Other bidders may have to make their offer contingent on financing. You will have an advantage if your financing is already taken care of.
2. Do your research. Check out the area where the house is located. If you have to go higher than your original bid, you want to know it’s worth it to you.
3. Have a good relationship with your realtor. Your agent’s job is to research the comps and tell you what the house is worth. It is also their job to know your limit and make sure you don’t go beyond your budget. Make sure your realtor knows your limit.
Once You’ve Made an Offer
1. Make a big deposit. Have your agent let you know the typical amount of earnest money for the price of the house. That will let you know what other potential bidders may offer as earnest money. Then, put down as much as you can afford. It will go towards your down payment if you get the property, and you will get it back if the offer doesn’t work. This could help you win the deal over another buyer.
2. Be flexible. Making it easy for the seller gives you a better shot at getting the property. Sometimes you may need to move closing dates forward or back. Consider that they may have already purchased another property and be in a hurry to close on theirs.
3. Don’t let emotions take over. A bidding war can be scary and exciting at the same time. You want to make sure you don’t get caught up in the moment and make a bad decision. Remember, if you don’t get this one, another one will come along!
The realtors at Ashurst Group know real estate. Let them put their experience to work for you. Need help navigating the waters of buying or selling a home? Give us a call, 251-929-2150, and see the difference we can make.