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Are Your Buyers Ready For A Bidding War?

With the nation spinning in an economic tizzy due to the pandemic, many buyers are surprised to see that unlike the last recession, this one is driving home prices up.  We’ve seen for some time an imbalance of supply and demand in the housing market but now with fewer homes available and more eager buyers in what amounts to be a short selling season, bidding wars are becoming the norm.

Getting your buyer ready for a bidding war doesn’t take much by the way of preparation, but can make a huge difference in closing a sale or looking for another home.

Establish Your Local Expertise

If you’re not already a local real estate expert, then it’s time to become one.  With the housing market expected to continue at low inventory levels for the foreseeable future, your ability to navigate your local marketplace becomes even more paramount than ever before.

That said, it’s all the more important that you become a local real estate juggernaut by understanding everything there is about your market, your competitors, and be able to think on your toes when deals don’t go your buyers way.  Being adaptable in a constantly changing housing market will give you a leg up and help your buyer be prepared for a bidding war.

Know a Home’s Price Thresholds

Knowing a home’s price thresholds will also help your buyer prepare for a bidding war.  This, along with our previous point, can give you an idea of where a home should sell for and where should actually bid it and ultimately buy it.  This will require a well-rounded knowledge of your local market as well as a savvy bit of experience in bidding.

There’s no doubt that when homes are in short supply, prices are driven beyond their conventional thresholds, and bidding wars can drive those prices well beyond what you would typically buy or sell a home for.  For this reason, you won’t want to overplay your hand and get into a bidding war that far outweighs the home’s appraised value.

Write a Strong Offer Letter

When working with sellers during a bidding war, it may very well make a difference to make your offer appealing in writing.

Offer letters may seem like things of the past, but a well-written, craftily-worded offer letter can pull on the heartstrings of a seller just enough to give you a second look and possibly ensure a closed sale.  Help your buyer write an offer letter that appeals not only to the seller but tells them exactly how your buyer plans on using the space and how valuable it is to them.

Get Pre-Qualified for a Mortgage

While this easily could, and maybe should, be our number one tip, getting your buyer pre-qualified for a mortgage should be high on your priority list, especially if a bidding war is on the horizon.  Motivated sellers are likely to prioritize cash-in-hand buyers and those with firm pre-qualification documentation above those who aren’t financially prepared.

As a matter of fact, buyers who aren’t pre-qualified or have their mortgage applications pending when offers start flying will likely miss out on any bidding.  This is exactly why you should get your buyer in touch with Tidewater Mortgage Services, Inc..  Tidewater’s 20 plus years in the industry has seen the market at it’s best and it’s worst and can help your buyer prepare for a bidding war!

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