Some of the hottest real estate markets in the US are defined as seller’s markets. A seller’s market develops when there is much higher demand than supply and buyers are often forced to act quickly to make the winning bid on available homes.
For sellers, this type of market is a dream. But for buyers who have their hearts set on a particular home, this could mean that they have to compete with multiple offers just to throw their hat in the arena. So, how do you navigate a bidding war and come out on the other side? Keep reading to learn more.
How Can I Navigate a Real Estate Bidding War?
If there are multiple offers out on the table, the seller is in control. They can choose to accept an offer outright; counter all offers made or only chose to counter a few of the offer and not the others.
Your Offer is Beat
If your first offer wasn’t the top bid, you could still get a second chance to impress the seller and close the deal. Typically, sellers will take the time to ask all of those who made an original offer to come back with their best offer by a particular date.
Don’t Rely on a Second Chance
Although it’s great when sellers give buyers time to make an additional offer, this isn’t a tactic you should bet on. If you truly love a home, you may only get one chance to make it yours. In this situation, you should make an offer towards the upper limit of your budget.
Make Your Offer Stand Out
If you’ve found your ultimate dream home and simply cannot let it go, you may want to consider writing a personal offer letter to the seller. While some sellers may be put off by this gesture, in many cases this strategy can work in your favor.