In a highly desirable neighborhood, bidding wars are a common occurrence. A bidding war happens when buyers clamor for the opportunity to buy a home. These buyers may try to outbid one another, making higher and better offers in hopes of being chosen by the seller to enter negotiations. One of the best things that can happen for home sellers in River Oaks is a bidding war, provided they are ready to handle the increased activity.
However, for River Oaks real estate homebuyers, bidding wars can mean increased challenges in securing the home of their dreams. Whether you're a buyer or a seller, it's important to recognize the early signs of a bidding war as it occurs in front of you. As a River Oaks real estate agent, Gayle Kennedy can guide you through both sides of this challenging yet ultimately rewarding process.
Early signs of a bidding war for sellers
Home sellers should be able to spot a bidding war as it occurs around their home listing. Increased buyer interest and a rapid pace of bids or inquiries often indicate the first steps of a bidding war about to happen. West University homes for sale are particularly likely to draw a bidding war because near-campus housing is in high demand.
The following signs can help you identify a bidding war before the buyer frenzy begins:
Increased attention before the house is ready
If you start getting inquiries as soon as your home is listed or your "For Sale" sign is in the yard, this indicates immediate and acute local interest. The more buyers and agents take it upon themselves to reach out, the more likely you will experience a bidding war when you begin to accept bids.
High attendance at your open house
How many people attend when you schedule an open house for your River Oaks home? The RSVPs alone may surprise you, and walk-ins are always a good sign. A lively open house with many people who come for a quick tour can indicate that there will be a high number of bids and competition to buy your home. While not everyone who attends an open house will bid, many of them will.
Pre-bidding and inquiries about other bidders
If you get offers before accepting bids, the bidding has already begun. Buyers inquiring about who else has offered can indicate that they have begun sensing competition in the air.
Early signs of a bidding war for buyers
Bidding for a house is an exciting and important stage for a homebuyer. If you have found a River Oaks home that could be your dream house, preparing a bid is the right thing. But you may be amid a bidding war if many other buyers are interested. Consider the following early signs that a bidding war may occur.
Homes listed as 'coming soon'
Some River Oaks real estate agents anticipate a bidding war and will set the stage. For example, homes listed as "coming soon" are not yet ready for the market but are building interest for them before an open house can be held. "Coming soon" homes may generate more competition, as can delayed acceptance of bids.
Back-to-back booked tours
If your tour of the house is marked by others leaving or arriving around your appointment, you may have competition among other buyers. Back-to-back booked tours can mean the home is being evaluated by many interested parties who may become part of a bidding war.
Your real estate agent advises you to sweeten the bid
Lastly, if your real estate agent advises that you try to make your bid more appealing, they may have heard around the network that there will be competition. Take their advice and sweeten your offer.
Home sellers: How to choose during a bidding war
If a bidding war occurs during the sale of your home, don't let it stress you. Accept all bids graciously and work with your River Oaks real estate agent to choose the best one. Here are a few tips to help you sort the offers and make a satisfying selection:
Calculate the total value of each bid
Consider each bid in total value. Even if buyers don't offer the highest number, they may suggest negotiation concessions or pay more of the closing cost balance to make their bid more appealing.
Narrow down your options
Discard the bulk of bids that are too low, lack financial backing, or offer unappealing concessions. This will allow you to narrow your finalists and carefully choose from your best offers.
Request best and final offers
Give bidders a chance to provide a "best and final" offer. This may involve a higher number, better concessions, or a more appealing story to help you decide. Best and final offers often stretch the total budget of your buyers if they are serious about winning the bid.
Trust your agent's advice
Let your real estate agent help you identify the most valuable offers and make the best decision for your sale. They have a clear understanding of the negotiations to come and will guide you to the best offer.
Homebuyers: How to compete in a bidding war
If you are determined to win a bidding war when buying a house, there are a few different things you can do to make your bid more appealing to the seller.
Include concessions in your offer
Consider negotiation concessions that can make your bid more valuable, even if you don't offer the highest number. Offer to take care of presale repairs, waive some usual requirements, or even offer leaseback so the sellers have more time to move out after the sale. Your real estate agent can advise on the right concessions to offer.
Secure a preapproved loan
When you bid, ensure a preapproved mortgage loan backs your finances. This assures the seller that your bid is solid and that you will follow through if they choose you over others.
Prepare a 'best and final' offer
If a bidding war occurs, expect to be asked for your "best and final" offer. Determine how high you're willing to bid and what concessions you might offer if this is your last chance to win the house.
Remain available for a quick response
Keep your phone on you and answer emails promptly. Sometimes, a seller's final decision happens in a few hours, and they may have final questions. Being available could be the difference between being a finalist and being the chosen buyer for your dream house.
Know when to walk away
Lastly, know that walking away from a bidding war is okay. As a buyer, there will always be new homes to explore, and some bidding wars become too inflated to justify the investment. Never let a bidding war push you past your comfortable home-buying budget, as ultimately, your goal is to be happy and financially healthy in your new home.
Buy or sell River Oaks real estate with Gayle Kennedy
Whether you're buying or selling a home, Gayle Kennedy is the Houston real estate agent that can help you tackle the challenges of a bidding war ahead. Homes deserve enthusiastic attention, and buyers deserve wonderful homes. With the right guidance, you can sell your home to the buyer with the best bid or buy a breathtaking home despite buyer competition. To learn more about how to tackle bidding wars and highly desirable properties, contact Gayle today.
