Avoid the bidding wars with these three simple hacks!

As a homebuyer, navigating the competitive real estate market can be daunting, but with the right approach and a proactive mindset, you can position yourself ahead of the competition. Let’s delve into expert tips and practical advice that will empower you to avoid bidding wars and increase your chances of successfully securing the perfect property. Say goodbye to stressful negotiations and hello to a smoother home-buying process. Here are the three ways to avoid challenging bidding wars in a competitive market like Columbus, Ohio. 

1) New Builds – Columbus has dozens of builders; most are building unique and beautiful homes. The new build market is less competitive than existing homes, and many builders offer incentives and discounts to attract more buyers. These incentives range from upgrade packages to the builder offering you a lower rate on your mortgage. The biggest downside of this route is that most neighborhoods being built right now are a reasonable distance away from Columbus and often are in areas that still need to be super established with local businesses. Another big reason the new build market is less competitive is the wait time required for some builders. It can take months, or over a year, for a project to be complete, and you get the keys to your new home. There are ways around this, but they typically involve getting a much less customizable home. Another thing to watch out for here is to work with a reputable builder who builds homes that will maintain and appreciate value over time. We have a list of excellent builders we love working with and would love to connect you to!

2) FSBO (for sale by owner) – These opportunities are from a homeowner trying to sell their house independently instead of hiring a professional Realtor to market, negotiate and ensure the transaction closes smoothly. Typically these homes are only seen by 10% of the potential buyers that see a professionally marketed home which translates into only competing with 10% of the other offers. Another big win for buyers looking to avoid bidding wars is that the seller is not a seasoned negotiator and likely needs to learn the terms of the sale that are commonplace in this market that benefit sellers. We often put terms in offers for our buyers on an FSBO that bring more protection and benefit to our buyer than is typical. If you want to move but need to sell your house first or want to wait to close for a few months, then FSBOs are an excellent opportunity to get those terms accepted. 

3) Overpriced homes – These are another excellent opportunity to buy a home without competing with dozens of other buyers in a bidding war! When a home is on the market for a few weeks without receiving an offer, there are typically one of two reasons; either the house is in bad condition or overpriced. Finding a house that is overpriced and has been on the market for a while and negotiating the price down is challenging, but if you are up for it, it’s a great way to get a deal. Most people don’t realize this, but the initial contract’s price isn’t set in stone. Buyers have two additional opportunities to negotiate the price down (or receive more favorable terms) after the purchase price is set! The first is after inspections, buyers can give the seller a choice, either drop the price or the buyer will walk away and find another home. The second is after the appraisal, but only if the appraised value is lower than the purchase price. The buyer can give the seller a choice, either drop it to the appraised value or the buyer will find another house. There is a risk here, though, buyers are responsible for paying for the inspection and the appraisal, so the cost of walking away during negotiations can range from $600-$1,500! But compared to offering tens of thousands of dollars over the list price and waiving protections and contingencies in a bidding war, I would take my chances to gain some negotiating leverage back.

Have questions? Ready to start looking for your next home? Know someone who is? Let’s chat! (Click the link in the header to book an appointment with Embark Real Estate Group).