In today’s Real Estate market of fast sales and bidding wars, having a strategy to win is a must. Here are three tips you can use to make sure a competitive market doesn’t stop you from securing the home of your dreams.
Beware of Phantom Offers
The listing agent will often over exaggerate the amount of action and attention that a house is getting. For example, if you are a potential buyer considering putting in an offer, the listing agent might inform you that the house has had many showings and that there are other offers expected as well. This is a classic intimidation tactic used to scare potential buyers into submitting a higher offer than they might have originally intended to. These so called ‘expected offers’ are what we refer to as ‘Phantom Offers’. To find out with certainty whether or not you should consider raising your offer, make sure your real estate agent checks with the listing brokerage to see how many offers are actually registered, if any! When buyers are serious about putting in an offer, their agent will almost always register the offer with the brokerage before submitting it. Make sure you are in the know by having your agent verify if the competing offers are registered, or just phantom offers.
Budgets bring bidding wars to a halt
So you found the perfect home and you are ready to make an offer but there is just one problem, the house is listed at the top end of your budget and you are competing against multiple registered offers! This situation can make you feel like you don’t stand a chance. Before you decide to call it quits remember this; People can only bid as high as their limit. Just because multiple offers are being submitted, it doesn’t mean there will be a bidding war that ends up with a sale price way above the listing price. In fact, sometimes multiple offer situations still end up with a sale below listing price! You never know what someone else’s budget constraints may be, so you have nothing to lose (and potentially your dream house to gain) by putting your best offer forward.
Consider a Bully Offer
Listing agents will often pre-set the date when they will be accepting offers so that sellers can review all offers at the same time and force buyers to bid against each other. A Bully Offer is when you disregard the pre-set date and submit an offer with an irrevocable set to expire before the other offers are being presented. When you do this, the seller has no choice but to address your offer first. If you are submitting a Bully Offer, I recommend you make it strong so that the seller is incentivized to accept right away instead of entertaining the multiple offers later. Keep in mind, when a Bully Offer is submitted, the listing agent is obligated to inform other interested parties that an offer is being reviewed early. This can potentially curb your advantage, but very often the other parties may not be ready to commit to an offer yet as they may have been planning to use the extra time to see other properties.
If you need a Real Estate agent that can help you navigate the competitive landscape of today’s housing market, contact Julian and Elsa Bocchinfuso today.
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Real Estate Sales Representatives
Century 21 Miller Real Estate Brokerage