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Agents Share Key Bidding-War Strategies

Redfin agents, in a new report, have shared their tips and tricks in helping homebuyers come out on top in today’s ever-competitive housing market.

Whether it be seeking out a new home to accommodate working remotely, or simply buyers taking advantage of record-low rates, demand continues to outweigh supply, resulting in bidding wars for these precious commodities nationwide.

“It’s the best and the worst time to buy,” said Faith Floyd, a Redfin real estate agent in Houston, in the report. “It’s the best time because mortgage rates are so low, and it’s the worst time because everybody wants to take advantage of low mortgage rates.”

To lend a hand to prospective home buyers, Redfin agents shared the following tips to emerging victorious in the event of a bidding war:

  • Opting for a condo in lieu of a single-family sale
  • Shortening the contingency timeline
  • Being open to making offers on homes, sight-unseen
  • Utilizing an agent and lender who are willing to communicate constantly with the listing agent
  • Searching for homes priced below what you can afford, leaving room to negotiate higher and keeping within your budget
  • Releasing your earnest money early on in the process
  • Offering to absorb some of the seller’s costs
  • Entering the homebuying process mentally prepared to lose
  • Exercising creativity throughout

As for sellers, Redfin agents felt the following tips were beneficial:

  • Getting a room away from the property (such as a hotel) while prospective buyers view the property, thus allowing for more showings
  • Making sure the home is priced right to avoid scaring off prospective buyers
  • Knowing that price isn’t everything, as sellers should consider the financial strength of the buyer, the optimal closing date, and buyer enthusiasm

Sarah Webb, a Detroit-based Redfin agent, said, “When offers are really close, decide what your biggest motivation is for selling your home, and choose the offer that best accomplishes that goal.”

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About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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