How To Navigate a Market Where Multiple Offers Is the New Normal

If you’re thinking of buying a home today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, low housing supply coupled with high buyer demand means you should be prepared to navigate a highly competitive market where homes sell fast and get multiple offers. Realtor.com has this to say:

“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”

In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That’s because when you find a house and submit an offer, it’ll likely be up against strong offers from other buyers. According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), homes today are receiving an average of 3.9 offers. That’s the most offers we’ve seen in January for the last 5 years (see graph below):



To help you navigate bidding wars with multiple offers, an expert real estate advisor is key. They know what’s worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer. Here are three tips to keep in mind that will help you make the best offer possible.

1. Know Your Numbers​

Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. Pre-approval shows sellers you’re serious, which can give you a competitive edge. You should also know making an offer at the home’s asking price may not be enough. Homes today often sell for more than their listing price. An agent can help you understand the market value of the home and what other homes are selling for in your area.

2. Be Ready To Move Fast​

Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes are selling fast, it’s important to stay on top of the market and be ready to move quickly. Your agent will help you stay up to date on the latest listings and help you put together your best offer as soon as you find the home you want to buy.​

3. Make a Strong but Fair Offer​

​When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible. One option is to wave some of your contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember there are certain contingencies you don’t want to give up, like the home inspection.

​Bottom Line

No matter what, your agent is your best resource for making an offer that stands out in a competitive market. Let’s connect to talk through what you can expect as a buyer and how to kick off a successful home search.

Looking to Buy, Sell, or Invest? Contact:

David Demangos - eXp Realty
Cell: 858.232.8410 | Realtor® DRE# 01905183
www.AwesomeSanDiegoRealEstate.com
We Go to Extremes to Fulfill Real Estate Dreams!

San Diego Real Estate Expert | Global Property Specialist
Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent
Green Specialist | Certified International Property Specialist
2016, 2017, 2018,2019,2020,& 2021 Recognition of Excellence Award Winner SDAR

Sellers: You’ll Likely Get Multiple Strong Offers This Season

Are you thinking about selling your house right now, but you’re not sure you’ll have the time to do so as the holidays draw near? If so, consider this: even as the holiday season approaches, there are plenty of buyers out there, and they really want your house. Here’s why selling this winter is a win for you.

Today’s buyers are still dealing with a limited number of homes for sale. Thanks to continued low inventory, those buyers are competing with one another for their dream home. And when that happens, if your house is one of the few on the market, it will rise to the top of the pool – and it will be worth it.

According to the latest data from the National Association of Realtors (NAR), the average seller received 3.7 offers on their house in September. For a view into what’s happening at the state level, take a look at the map below:

Nationwide, the average seller today is getting nearly four offers. That number is significant because it means you’ll likely have multiple offers to pick from if you sell your house this season. To put things into perspective, no matter where your state falls, remember that you really only need one good offer to close the deal.

Any offer you receive will likely be from a highly motivated buyer who’s doing everything they can to beat the competition. The stakes for buyers are high. They’ve been looking for a house and they want to lock in their dream home before prices and mortgage rates rise further next year. Chances are, they’ll get creative with the terms of their offer, which could include waiving contingencies and offering over the asking price – both of which are great news for you.

If you’re on the fence about when to sell, remember your house is a hot commodity this season. As other sellers take a break for the holidays with plans to re-list their homes in the new year, you can put your house in front of motivated buyers by making your move today. That means your house will be the center of attention, and likely the center of a bidding war too.

Bottom Line

Selling now gives you even more opportunity to win big as buyers compete for your house in today’s market.

Looking to Buy, Sell, or Invest? Contact:

David Demangos - eXp Realty
Cell: 858.232.8410 | Realtor® DRE# 01905183
www.AwesomeSanDiegoRealEstate.com
We Go to Extremes to Fulfill Real Estate Dreams!

San Diego Real Estate Expert | Global Property Specialist
Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent
Green Specialist | Certified International Property Specialist
2016, 2017, 2018,& 2019 Recognition of Excellence Award Winner SDAR

Are You In It To Win It With Your Home Offer?

You’ve seen every house on the market and you’ve finally found the spot you can't wait to call home. In fact, you’ve mentally decorated it and planned your new life, down to the barbecues and block parties you’ll have with your awesome new neighbors. 

Hold on... Slow down. As you know, you still have one giant hurdle to overcome: You've got to make the offer that wins the house. And in a highly competitive housing market, that can be easier said than done. Don’t blow your chances with any of these common home offer mistakes.

1. Dragging your feet, delaying

If you love a property, the worst thing you can do is wait to make an offer. Of course, you're allowed to have feeling of uncertainty, after all, this is likely the biggest financial decision of your life. But the longer you vacillate, the greater the chances you'll set yourself up for failure.

Time kills transactions, dragging your feet means you could wind up paying more in a bidding war situation or missing out on the property all together.

Not only should you be emotionally ready to pounce, but be logistically ready as well. That means pulling together all of your paperwork—bank statements, pre-approval letter, and any documents supporting proof of funds—while you're house hunting.

Get everything ready so we can act fast when we find a home you love.

2. Offering your max pre-approved amount

Today’s sellers are often besieged by multiple suitors, and the successful buyer will be one who's prepared for a bidding war. Make sure you've got a strong financial arsenal. That means getting pre-approved (do this now, if you haven't already) to show a seller you're financially prepared to buy a home - their home.

However, when you make an offer, beware of submitting a price that exactly matches the amount you were pre-approved for. Many buyers come in with a pre-approval for the exact offer price, but when you’re competing against other offers, including cash offers, you want to show financial strength. An exact pre-approval could make a listing agent nervous because not only does the buyer not have any wiggle room to negotiate, but they might no longer qualify if interest rates rise.

In this market I often advise buyers to look at homes under their max loan amount, When you have to bid against multiple offers, they will need some room to go up, and if they are at their maximum amount, that may not happen.

3. Using an obscure lender

Also consider using a well-known local mortgage lender or bank, agents, and therefore sellers, are generally more comfortable with a local lender they know.

4. Lowballing

Trust your agent and bid accordingly - even if it means offering a little more than you think you could get away with. If you low-ball the seller in the hope that it'll spark a negotiation, it could backfire - especially in a seller's market.

A lowball offer that isn't backed up with math or comparable sales data is disrespectful and could turn off the seller and possibly mean you will miss out on the property completely.

5. Waiving the inspection contingency

I don't care whether it’s new construction or even your mom’s house you’re buying from her—get it inspected.

An inspection is the only way to uncover potential flaws that could cost major cash to fix. And if you waive the inspection contingency in your offer, you stand to lose your earnest money if you back out.

6. Letting outsiders sway your offer

When you're buying a home, you probably want a second opinion. And probably a third, fourth, and maybe even 10th. We totally get it. But beware of allowing these people - who mean well but haven't seen the many, many other homes you've seen - influence your offer.

The 'adviser' does what they think is best and tries to protect the buyer and usually slams the home. Unfortunately, they don't have the education in seeing the other 10 homes or understanding the market.

If you're going to rely on outside advice, then ask that the person accompany you through as much of the process as possible.

7. Not selling yourself

Wait, isn’t it the seller who, you know, does the selling? It might not sound quite fair, but in a seller’s market, you want to make sure you—the buyer—look as good to the seller as that picture-perfect house looks to you.

And it's not just about looking good on paper. In fact, the offer process begins the moment the buyer steps through the door at the open house or showing.

In today's highly competitive environment, the listing agent is trying to determine which buyer will be the easiest to deal with, that’s why buyers should avoid pointing out defects, asking a lot of nitpicky questions, or even insulting the owner’s taste by discussing changes they want to make.

Basically buyers who act less than enthusiastic will see themselves at a competitive disadvantage when sellers are comparing multiple offers.

And, don’t forget to help seal the deal with a love letter—a personal touch could be enough to boost you to the top in the seller’s mind.

Looking to Buy, Sell, or Invest? Contact:

David Demangos - Keller Williams Realty
Cell: 858.232.8410 | Realtor® BRE# 01905183
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

San Diego Real Estate Expert | Global Property Specialist
Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent
Green Specialist | Certified International Property Specialist
2016 Recognition of Excellence Award Winner SDAR