Most of those who are interested in purchasing or selling a home this year are aware it’s a seller’s market and bidding wars are a common practice for hot areas. In fact, Redfin, a real estate broker, reported that nearly one in four (23.6%) of homes sold in 2017 went for more than their asking price. However, Redfin also shared with readers that the highest price isn’t always the winner.
They took a better look at the data they had collected in the last couple of years to see how strategies that were tracked affected buyers’ odds of winning the war. This is what they found:
While an all cash offer is the most successful strategy in winning your dream home, it’s also not likely for most buyers. However, according to Redfin’s agents waiving a financing contingency or writing a personal letter can be very effective in swaying a seller. Pre-approvals are also helpful in gaining ground when making an offer.
If you are a home buyer in today’s hot market, all is not lost. Pair yourself with your credit union to ensure you are taking the steps to have your loan ready when the time comes and make sure you are working with a reputable real estate agent that can make your deal happen.