Bidding wars off the charts!
By Kurt Real Estate Feb 27, 2021
If you’re looking to buy a home and you’ve been browsing for some time, then you probably already know that bidding wars have become the norm. With record low interest rates driving buyer demand and COVID-19 preventing sellers from putting their homes on the market, we have found ourselves in a tightly squeezed market where the competition is stiff.
The primary reason many longtime buyers are still searching is because they keep getting outbid. According to the National Association of Realtors, 40 percent of buyers reported being outbid. That number is astonishing! That means over half the buyers out there looking are facing bidding wars and most of them are being outbid by someone else with more cash to spend.
Agents are advising clients to look in a price range $50,000-100,000 below they’re max to give them room to negotiate up. Right now, it’s all about who will rise to the top. We’re even seeing many sellers counter out things like inspection and appraisal contingencies.
Gone are the days of “waiting it out” or even just waiting until the weekend to see a house. Savvy buyers know they have to get out and see homes the minute they come on the market or they risk losing out.
With historically low inventory and unparalleled demand, there’s no telling when this cutthroat market will slow. If you are considering buying, now’s the time! It’s doubtful we may see interest rates this low again. Buyers out that are out there looking know that this buying power won’t last forever. So talk to a lender, work out your finances, get with an A+ agent, and start shopping so you can seize the opportunity while it’s here!
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