There is now doubt that 2020 has been a strange and challenging year! Of course, this year will be remembered most for the COVID-19 worldwide pandemic. Due to this pandemic, the real estate market could be compared to a wild roller coaster ride. At the start of the pandemic, the real estate market came to a screeching halt for a few months. This caused the already tight inventory of homes for sale to become even tighter. With this said, buyer demand remained strong and would surface once again during the summer months. As we have begun to open up the economy more and more, buyers are now competing all at once for a limited supply of homes for sale. Add in the historically low interest rates & now you have even more potential buyers competing in the market.
Ultimately, we have now entered an environment where bidding wars for homes are quite commonplace throughout many markets. So how do you differentiate yourself as a buyer from other prospective buyers in a bidding war? Well, the obvious answer is to outbid the other buyers, of course. However, in many cases there may be other factors that will assist you in obtaining the winning bid. Below are a few ideas to consider when you find yourself in a bidding war:
- Ask about pain points: Have your real estate agent ask the selling agent if the seller has any particular needs or a timeline. Perhaps the seller needs a quick closing or a particular closing date? Then, you could draft your offer accordingly to address these pain points.
- Shorten the inspection period and/or the contingency timeline. This could help show the seller that you are a serious buyer & less likely to back out.
- If it is an elderly seller or an estate sale, you can offer to have the property cleaned out at closing. This could potentially be a huge relief to many sellers.
- Make a personal connection: Perhaps the seller raised their family in the home & now you are trying to do the same with your young family. A brief handwritten letter explaining this could potentially go a long ways in connecting with the seller.
Do you still have questions or need assistance with your home search in South Florida? Contact Live South Florida Realty, Inc. today!