How to Win a Bidding War Before It Starts

The Four Percent


Q: My wife and I are trying to buy a house in Fairfield County, Conn., and we keep losing bidding wars. We offer over the asking price, but we can’t pay in cash. How much do we need to offer to get a house? Is there a magic number, or is this a pipe dream and we’ll never find one?

A: You are deep in a seller’s market, so any reasonably priced home is going to have serious competition. Just compare the first quarter of 2021 to the same period in 2020 in Fairfield county: The number of home sales jumped 43 percent and the number of listings fell 57 percent, a record rate of decline, according to a report by Douglas Elliman. This narrative is being replicated in markets around the country.

“It’s trial by fire, where the buyer has to learn through pain that they are not in as much control as they thought they were,” said Jonathan J. Miller, president of the appraisal firm Miller Samuel, and the author of the Douglas Elliman report.

Jennifer Thomas, a licensed saleswoman at the Metalios Group in Greenwich, Conn., said that in her market the winning bid is typically 10 to 15 percent over the asking price. But not always. “I’ve had winning bids and we weren’t the highest offer,” she said. “It’s not just about your price, it’s about your terms and conditions.”


Source link Real Estate

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