The Buying Series Part 11 – Competing offers

You may have heard the term “seller’s market” being thrown around. A seller’s market is when there are more buyers than there are homes for sale, leading to high demand and low inventory. In such a market, it’s not uncommon to encounter competing offers, especially if the property is particularly desirable.

Competing offers can be stressful, but they’re not uncommon in hot seller’s markets. So, before you find yourself in the middle of a bidding war, it’s best to understand the process and prepare yourself for the possibility.

What are Competing Offers?

Competing offers occur when multiple buyers are interested in the same property and submit offers at the same time. In a hot seller’s market, the seller may receive several offers, each higher than the previous one, as buyers try to outbid each other.

In such a situation, the seller may choose to accept the highest offer, reject all offers and request for new and higher ones or counter one offer while rejecting others.

How to Navigate Competing Offers

When facing competing offers, it’s essential to be prepared, both mentally and financially. Here are a few tips to help you navigate this stressful process:

  1. Know your budget: Be realistic about how much you can afford and set a budget. Decide on the highest amount you’re willing to pay for the property and stick to it.
  2. Move quickly: In a hot seller’s market, time is of the essence. Be prepared to move quickly by having your pre-approval letter ready, and work with a real estate agent who is experienced in the local market and can help you make informed decisions quickly.
  3. Make your best offer upfront: If you know that the property is likely to receive multiple offers, make your best offer upfront. Don’t try to play the negotiation game if you want to increase your chances of being the successful buyer.
  4. Be flexible: If you’re in a competing offer situation, it’s essential to be flexible. You may need to consider waiving some contingencies, like the inspection or appraisal, or offer a larger down payment to make your offer more attractive to the seller.
  5. Manage your expectations: In a hot seller’s market, it’s possible that you may not get the property you want, no matter how much you’re willing to pay. Be prepared to manage your expectations and don’t let your emotions get in the way of making sound financial decisions.

Competing offers can be stressful, but they’re a common occurrence in a hot seller’s market. By preparing yourself, knowing your budget, and working with an experienced real estate agent, you’ll be better positioned to navigate this process and come out a successful homebuyer. So, don’t be discouraged and keep searching for your dream home. It’s out there, and you will find it!