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We have now been talking for months about the high demand for homes and shortage of inventory. Leading to severe bidding wars that have become extremely common among buyers.
With a bidding war, the prospective home buyers keep outbidding one another on the same property with the hope of getting the seller to accept their offers. We suggest with a few tips to enter a bidding war strategically.
1. The price is competitive
Due to low inventory, a lot of homes are being listed at extravagant prices. If you find a home to your liking having a reasonable listing price, then it may be a good idea to enter a bidding war, especially when the asking price is well within your budget and to the level you can stretch.
If you have a budget of $500,000 on a home and the property listing is at $475,000. Then even if you enter a bidding war and land up paying the extra $20,000 in the process, you’re within your financial comfort.
2. The home meets all your criteria
If you find a home that is perfect for you with regards to layout, size, features, and rooms then it is worth fighting for.
Since inventory is so tight, finding a home that meets your requirements is difficult so when you see one you should put effort into it.
3. You are bidding with only one other potential buyer
Warring with multiple buyers could be stressful and painful. It is best avoided but if it’s only you and another buyer, then the process of bidding on the same home will not prolong.
Though bidding wars are common in today’s housing market, you don’t have to enter one. They don’t want to get with paying more, so it is important to know when to walk away.
Reference Source: The Ascent
