Minute with Mike- Are Bidding Wars Still a thing in Real Estate?
If you’ve been house hunting over the past few months you may have noticed that the real estate market has changed…or softened. There’s definitely more homes on the market at the same time…and that gives many buyers time to breathe…and CHOOSE. So this new landscape gives rise to the question: “Are bidding wars a thing of the past?”
Well, the short answer is NO. Multiple offer scenarios has always been a part real estate experience. However, what made it so stressful for buyers was the intensity of it all. Not only was it common for a listing to receive sometimes dozens of offers but buyers felt compelled to bid wildly, remove contingencies, and offer a free rent back to the seller (that’s when the seller stays in the just sold property FOR FREE…usually up to 60 days). A new dawn for buyers has approached. We’re not experiencing wild buyer concessions. Instead, buyers have choices and are beginning to negotiate with sellers.
That said don’t be surprised if a well priced home that was prepared for sale properly elicits a multiple offer scenarios. And you know what…. lets stop using the term “bidding war.” It’s not a war. A property that generates massive interest is one that has strategically been prepared to face the current real estate landscape. If you’re a buyer and you automatically repel to the notion of a multiple offer scenario (…I hear it all the time: “I don’t want to be involved in a bidding war”). Please try to reframe it: “Here’s a beautiful home that I love and there’s other buyers that share that sentiment” AND THEN GO FOR IT… And if you need guidance on purchase price or a buying strategy make sure you’re working with an agent that has the tactical experience to advise you…particularly in this transitioning market.