May 20, 2021
A Substantial Challenge for Buyers : Winning the Bidding War
The past year has brought a series of unprecedented events, altering every aspect of our lives. These immense changes to our lifestyles had dramatically changed the real estate market. Our homes had become our offices, centers for education, and all forms of entertainment. Even with the end of the pandemic in sight the importance of our homes has remained consistent. Because of these changes to buyer’s needs a seller’s market has been cultivated over the past year. With minimal homes on the market, buyers remain in fierce competition to secure their desired properties.
With sellers controlling the market, the average home search process has extended to months of searching for buyers. On average, 64% of actively searching buyers spend 3 months or longer house hunting without success (National Association of Home Builders). Of the active buyers who participated in a study done by the National Association of Home Builders it was determined that the number one reason buyers couldn’t secure the home they desired was due to losing a bidding war. Additional top reasons included inability to find an affordable home and lack of homes they wished to purchase. Due to these circumstances, many buyers have been forced to become increasingly flexible with their wants, expand their search, or lower their expectations entirely.
There can be a variety of factors that determine the success of a bidding war. Yet one of the most important factors is acting with speed. Speed in terms of decision making and responsiveness can make a deal go smoother. Additionally, it shows the seller a high level of interest in the property and that you are serious about purchasing their home. One of the most important factors in having a realtor who is skilled at negotiation and can assist you throughout the bidding process.