E175: How to win in BIDDING WARS in the 2023 market

After a crazy several months of high interest rates, inflation, a recession, and even a bank crisis, the housing market has gone through a lot of highs and (even more) lows. But, despite it all, demand for homes is still high, which means that bidding wars are BACK. So, how do you get your offer on top of the pile when the bidding gets tough? David tells all in this latest episode.

Here are some power takeaways from today’s conversation:

• As usual, low inventory is the problem
• There is no logic and no math in bidding wars
• What you need to know to win a war
• Prove your legitimacy with your offer

Episode Highlights:

[04:22] How Much Should You Offer?

When it comes to making an offer on a home, there is no spreadsheet answer to how much your offer should be. Sorry, engineers, but that’s the truth. When multiple people are putting offers on a home, the value is not determined by logic or math - it becomes subjective. Because the seller is the seller, they can handle the sale any way they want to. Any spreadsheet you’ve made, well, throw it out. 

[07:46] The List You Really Need

In a real bidding war, a spreadsheet won’t help you. Instead, David’s list shows you what you need to survive one like a champ. Here it goes:

1. Don’t give up.
2. Believe.
3. Be ready to compromise.
4. Talented professionals can speed up the process.

Ultimately, having a solid support team is really going to get you the help you need. Finding someone who is a seasoned realtor and knows the prices of homes in an area will put you at an advantage.

[10:41] Building Blocks for Bidding Success

This part of the podcast is where David really dives into the nitty gritty behind winning bidding wars. First, you need to make sure you have a solid support team. Second, there are some things you can put in your offer to sweeten the deal. Sometimes a higher price just won’t cut it, but offering to cover the closing costs might. Next, how to chat with your lender about removing certain contingencies to make you even more legit in front of the seller. Lastly, how do you counter an offer? 

 

Resources Mentioned:

https://www.howtobuyahome.com/podcast/