It seems like every listing of a well maintained home, in a good location within the communities I serve, regardless of price point, is experiencing a bidding war. Convincing my clients to increase their offer above List Price isn’t easy. And when they don’t win; they are extremely frustrated.
So, with a little bit of digging, I took a look at what the research shows. And there are 2 things buyers need to know right now that will give them a competitive edge. The first is that the amount of inventory is much lower than it was just a year ag. The second is that the amount of homes that are “under contract” (have accepted offers, cleared inspection and waiting to close) is so much higher. Together these facts create an environment in which more buyers more vying for less properties. The numbers are incredible. See for yourself.
Having a strategy in place before putting in an offer is key to winning in a multiple offer (bidding war) situation. You need to understand the inventory levels, the pace at which homes are selling in a given area and the comps of similar homes. In short, buyers need to be more educated in order to end up with a home they love without over paying for it.