default avatar
Welcome to the site! Login or Signup below.
Logout|My Dashboard

How to deal with bidding wars without overpaying

Font Size:
Default font size
Larger font size

Posted: Thursday, August 1, 2013 2:17 pm

This market is poppin’! Homes are selling like hotcakes. But nothing is more disappointing than to find the home of your dreams, quickly write an offer, get your hopes up; only to find out the home is already pending. Many people are amazed at finding how difficult it is to get offers accepted with the current market situation.

The biggest contributors to our sticky market are a 1-month supply of homes, low interest rates, historically low interest rates, 80 percent of the population being able to afford a median priced home, and 86 percent of 18- to 34-year-olds wanting to purchase a home.

Any one of the above is enough to fuel a seller’s market and push prices up but combine them all together in the same selling season and buyers find themselves in one of the toughest bidding war markets around.

So how can buyers win a bidding war without overpaying? Here are a few items to consider:

  • Work with an area agent that knows the area. Working with an agent that is up to date on area market price is one of the single best things a buyer can do.
  • Be realistic with price. Now that things have heated up, make sure your initial bid isn’t insulting.
  • Pick your “Walkaway Number” – and stick with it. Don’t get carried away by a frenzied bidding war. It’s easy to get carried away. Pick a number at the beginning of your search that is an absolute maximum and don’t stray from it.
  • Be flexible with other terms. While price may be what matters most to a seller, being flexible on other selling conditions can set your offer apart. Let the seller know if you are open to discussing closing dates, moving arrangements, or offering a “rent back”.
  • Don’t dawdle. Homes are selling within days of hitting the market so make sure you are ready to write up the offer once you find a home you like. Previously buyers could take their time and mull it over. Nowadays if a buyer takes too long they will find the home slipping through their grasp and already sold.
  • Connect with the sellers. Write a letter introducing yourself to the seller and make a personal appeal for the home. Offers often look the same on paper, however this tactic helps to “humanize” the offer and set you apart.

Sheri Aguilar is the president of the Lodi Association of Realtors and can be reached at Sheri@YourLocalAOR.com

Rules of Conduct

  • 1 Use your real name. You must register with your full first and last name before you can comment. (And don’t pretend you’re someone else.)
  • 2 Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually oriented language.
  • 3 Don’t threaten. Threats of harming another person will not be tolerated.
  • 4 Be truthful. Don't lie about anyone or anything. Don't post unsubstantiated allegations, rumors or gossip that could harm the reputation of a person, company or organization.
  • 5 Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 6 Stay on topic. Make sure your comments are about the story. Don’t insult each other.
  • 7 Tell us if the discussion is getting out of hand. Use the ‘Report’ link on each comment to let us know of abusive posts.
  • 8 Share what you know, and ask about what you don't.
  • 9 Don’t be a troll.
  • 10 Don’t reveal personal information about other commenters. You may reveal your own personal information, but we advise you not to do so.
  • 11 We reserve the right, at our discretion, to monitor, delete or choose not to post any comment. This may include removing or monitoring posts that we believe violate the spirit or letter of these rules, or that we otherwise determine at our discretion needs to be monitored, not posted, or deleted.

Welcome to the discussion.

Some helpful real estate tips for both buyers and sellers

We are pushing into the Spring months where the real estate market normally starts to pick back up. The phones are already starting to ring on existing listings, inbound emails from both buyers and sellers have picked up dramatically in just the past few weeks.

Posted: January 30, 2015
Comments (0)
more »

Loan Calculator

Your News

News for the community, by the community.

Mailing List

Subscribe to a mailing list to have daily news sent directly to your inbox.

  • Breaking News

    Would you like to receive breaking news alerts? Sign up now!

  • News Updates

    Would you like to receive our daily news headlines? Sign up now!

  • Sports Updates

    Would you like to receive our daily sports headlines? Sign up now!

Manage Your Lists