If you’re in the market to purchase a new home and have been shopping around, you might already know that the number of properties available is low, and bidding wars have become the norm. Therefore, real estate expert Andrew Shader says you’ll need to be prepared to navigate a very competitive market because homes sell fast, and most of them quickly receive multiple offers.
Record-Setting Bidding Wars
Oftentimes, the minute homes go on the market, the offers start coming in. In situations like this, it’s critical that homebuyers get ahead of the competition. These days, when a homebuyer submits an offer on a home, it will likely be up against several solid offers from other buyers.
In January 2018, homes for sale received an average of 2.1 offers. In January 2022, that number had almost doubled to 3.9. In order to navigate those bidding wars that involve multiple offers, homeowners must work with an expert real estate advisor.
How to Navigate the Bidding Wars in the Home Buying Market
Working with an advisor isn’t the only thing that will help homebuyers, Andrew Shader explains. Following are some additional suggestions that can help you navigate the market when multiple offers are more common than ever before.
Always Be Ready to Move
Because of the fast pace of house sales now, homebuyers need to be prepared to move fast. The competitive housing market demands that buyers stay on top of the market by taking advantage of the help that a real estate agent can provide. They can help buyers stay up to date on listings and put together competitive offers quickly.
Know the Numbers
You need to work with a lender to understand your budget and how much you can afford. Make sure you are pre-approved for a mortgage before submitting offers; that tells the seller that you are serious. You also need to know that submitting an offer at the home’s asking price likely isn’t going to be enough these days.
Make a Strong-Yet-Fair Offer
Speaking of offers, you’ll need to determine what kind of an offer is competitive but still fair. Your real estate agent will be able to help you put your best foot forward, and they can help you present a strong offer.
Put It All Together to Make an Offer
Offers can (and often should) include more than just a price. A good real estate pro will be able to use their expertise to pull certain levers to make your offer as attractive as possible. For example, they can help you decide to wave some contract contingencies or not. Although submitting the best offer has always been the key to homebuying success, speed has entered the arena, too, and is now more important than ever.
Insights from Andrew Shader
Andrew Shader is a Ft. Lauderdale real estate entrepreneur with a passion for finding value-added properties and increasing their value by up to 60% or more without relying on future appreciation. Part of his success lies in his ability to compete in the modern real estate marketplace.