If you are considering a Windsor property this year, understand that in some areas, it’s a seller’s market. This means that homeowners may entertain several bids before selecting the best one. If you find a home that you love and eager to make an offer, chances are, you may have some competition. So how do you make your offer stand out from the rest? Before we start, keep this in mind:
In a Buyer’s Market, multiple offers are often, but not always, less than the listing price. In a Seller’s Market, the bid is often higher than the listing price and you may be competing with many buyers.
1. Sell Your Home First!
When bidding against several other buyers, you want to make an offer without any contingencies if at all possible. In a Seller’s Market, it is highly desirable to have sold your current home, have a pre-approval letter from your lender on hand and be ready to act once you submit your offer.
2. Get As Much Information As Possible!
Confer with your real estate agent and get answers to the following questions:
- Do sellers want a quick escrow?
- Do they have any special requests? (i.e. like staying in the home through end of school year)
3. Be Polite And Less Greedy:
With sellers entertaining several offers, the last thing you want to do is appear greedy and inconsiderate. Don’t be unreasonable with demands, because in a Seller’s Market, it is highly unlikely that a seller will help with closing costs, or even pay for a home warranty.
4. Write A Letter:
Surprisingly, this often works with sellers, particularly those that are selling a family home that has countless memories. It never hurts to sit down and write what you love about the home, about how much you admire the care they took with the property and how you want to ensure them that you will maintain it well and your strong desire to raise your family in their well-kept, loving home. Sellers do appreciate the fact that buyers take the time to do this.
5. Make Offer Quickly:
If you are certain you have found the right home for you and your family, then don’t hesitate, and make an offer to avoid a multiple bid situation. In a competitive market, there is a good chance that if you love a home, someone else does too who is willing to make an offer quickly. Again, have all paperwork ready and request in your offer that sellers respond within 24-48 hours so they don’t wait to see if they receive a better offer.
6. Make Your First Offer Your Best Offer:
If you know that a seller is receiving multiple offers, then make sure your first offer is your best one. Now is not the time to hold back to see if the seller will bite.
7. Having Said That, Don’t Let Your Emotions Get The Best Of You:
Making an offer on a home that is a hot commodity is stressful, particularly if you can’t imagine living anywhere else, but it is critical not to let your emotions get in the way when bidding on a home that others want as well. Stick to your budget and be prepared to walk away if the sellers come back and make a counter offer that goes outside of your comfort range. Buyers often feel that they will never find a home they love as much, so they will make all kinds of concessions and bid outside of their budget. However, as a real estate professional for over 25 years, I can guarantee you that you will find another home you like as much, if not more, so don’t buy into the fact that there are no other homes available, because that simply won’t be the case.
So again, the key to winning a bidding war is to be ready! If your real estate agent wants to show you a home that is getting lots of attention, drop everything if you can, tour the property and make your best offer if it is everything you wanted.