{"id":1908,"date":"2019-02-22T11:43:56","date_gmt":"2019-02-22T15:43:56","guid":{"rendered":"https:\/\/www.beingbobblog.com\/?p=1908"},"modified":"2020-06-12T09:03:57","modified_gmt":"2020-06-12T13:03:57","slug":"winning-a-real-estate-bidding-war","status":"publish","type":"post","link":"https:\/\/beingbobblog.com\/happy-holidays\/winning-a-real-estate-bidding-war\/","title":{"rendered":"Winning a real-estate bidding war"},"content":{"rendered":"\n

<\/a><\/p>\n\n\n\n

The housing market is less competitive these days but bidding wars can still happen. <\/h2>\n\n\n\n
\"\"\/
Home buyers today may not face as much \ncompetition as they did a few years ago, but they should still prepare a\n strategy for dealing with a bidding war.<\/figcaption><\/figure><\/div>\n\n\n\n

Want to be sure that you\u2019ll place the winning bid a home? Then you better be prepared to pay in cash.<\/p>\n\n\n\n

A new report from real-estate brokerage Redfin<\/a>\n examined the most successful strategies to use when dealing with \ncompeting bids for homes. Far and away, the best approach was to make an\n all-cash offer, researchers found.<\/p>\n\n\n\n

Committing to buy a home \nwithout financing more than tripled the likelihood of placing the \nwinning bid. The study was based on an analysis of the outcomes of 9,000\n offers that Redfin agents wrote on behalf of home buyers who faced \ncompetition for their desired property between January 2018 and \nSeptember 2019.<\/p>\n\n\n\n

The last time Redfin analyzed the best strategies for approaching a bidding war back in 2017, all-cash offers also came out on top of the list. But at that time, making an all-cash offer only increased the likelihood of success by 97%.<\/p>\n\n\n\n

\u00e2\u20ac\u0153A couple of years \nago, the market was much more competitive than it is now,\u00e2\u20ac\u009d Redfin chief \neconomist Daryl Fairweather said in the report. \u00e2\u20ac\u0153Sellers might have had \nmultiple all-cash bids to choose from, and offer price more often ended \nup being the determining factor.\u00e2\u20ac\u009d<\/p>\n\n\n\n

A separate report released by Redfin last week indicated that only 10% of offers<\/a> written by the brokerage\u2019s agents sparked a bidding war, representing a 10-year low.<\/p>\n\n\n\n

Much\n like bidding wars, all-cash offers on homes have become less common. \nAll-cash sales only accounted for 17% of existing-home sales in \nSeptember, according to the National Association of Realtors<\/a>.\n Comparatively, all-cash deals were extremely popular in the wake of the\n Great Recessions, driven by investors looking to scoop up homes quickly\n at the low prices then. In November 2013, 42% of residential property \nsales were completely cash transactions<\/a>. <\/p>\n\n\n\n

Nevertheless,\n all-cash offers remain competitive in today\u2019s market because of the \nhurdles securing financing can pose. As a result, sellers in today\u2019s \nmarket appreciate the assurances all-cash offers provide that the deal \nwon\u2019t fall through.<\/p>\n\n\n\n

The second-most effective strategy from the \n2019 analysis was writing a personal letter to the home\u2019s seller. This \nincreased the odds of success by 59%. <\/p>\n\n\n\n

One strategy that has become far less effective as the market has cooled over the past two years is offering to waive a financing contingency. These clauses indicate that the offer is dependent on the buyer receiving financing for the purchase from a lender and are designed to protect the buyer from liability in the event that a sale falls through because they couldn\u2019t secure a loan. <\/p>\n\n\n\n

While\n waiving this contingency was previously shown to increase the odds of \nwinning a bidding war by 58%, nowadays it will only boost a buyer\u2019s \nchance by 20%.<\/p>\n\n\n\n

Redfin also investigated the effectiveness of two \nadditional strategies some buyers pursue \u00e2\u20ac\u201d waiving the inspection \ncontingency and conducting a pre-inspection of the property. The \nanalysis showed these approaches did not lead to an increased likelihood\n of winning a bidding war. <\/p>\n","protected":false},"excerpt":{"rendered":"

The housing market is less competitive these days but bidding<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,13,6],"tags":[],"class_list":["post-1908","post","type-post","status-publish","format-standard","hentry","category-all-posts-comments","category-listings","category-real-estate"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","chromenews-featured":"","chromenews-large":"","chromenews-medium":""},"author_info":{"display_name":"Being BOB","author_link":"https:\/\/beingbobblog.com\/happy-holidays\/author\/admin\/"},"category_info":"All Posts & Comments<\/a> Listings<\/a> Real Estate<\/a>","tag_info":"Real Estate","comment_count":"0","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p822aG-uM","_links":{"self":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/posts\/1908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/comments?post=1908"}],"version-history":[{"count":0,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/posts\/1908\/revisions"}],"wp:attachment":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/media?parent=1908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/categories?post=1908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/tags?post=1908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}