Look what we posted way back in 2013 about bidding wars in a hot market. We’ve been through a number of seller’s markets since then and guess what…we’re here again! Nowadays, any buyer who is seriously in the hunt knows that these types of behavior become muscle-memory when markets heat up like what we currently have. The rules are basically the same in 2021, but with a few new tricks.
You’ve scoured the listings, toured the homes, and researched the neighborhood. Now you’ve finally found the one. But before you can move in your Eames lounge and Noguchi coffee table, you have to survive the bidding war.
It’s a seller’s market in Seattle right now, with a scarcity of new listings and the most promising properties being snatched up in a matter of days. And if you’re in the market for a Modern home, where inventory varies from area to area, the competition may be even stiffer. So how can you stand out from the crowd? Here’s how to come out on top in a bidding war:
1) Figure out your financing
Cash offers are very tempting for sellers, who don’t want to worry about a sale falling through at the last minute due to financing. But if a cash offer isn’t an option for you, getting pre-approved, showing you have solid credit and steady employment, and putting down a fair amount of earnest money can make your offer stand out.
2) Waive contingencies
Today’s buyers are waiving contingencies left and right, from inspections to financing to appraisals. Although waiving everything isn’t right for every buyer, you can take certain steps—like scheduling an inspection before you put in an offer—to waive and keep your peace of mind.
3) Write a letter
Oooops! This one hasn’t aged well. In 2021 there is a concern that a buyer who doesn’t win could claim seller bias due to something in the buyer’s love letter, so “Love Letters” are now highly discouraged.
It isn’t all about the money. Sellers are attached to their homes, and they want to know that the person who buys their property will cherish living there, too. Writing a letter about yourself and why you love the home can establish a personal connection with the seller. This is especially important when it comes to Modern homes, where the architecture and contemporary lifestyle are a huge part of the property’s personality.
4) Move quickly
Remember when we said properties are being snatched up in a matter of days? That’s no joke. Be prepared to pounce when you find a home you love. Waiting a day or two can be the difference between having your offer accepted and having it stuck in a bidding war.
5) Enlist an expert
Great brokers are savvy, knowledgeable, and trustworthy. They know how to construct the best offers, they know how to negotiate, and they know how to guide you through everything from the home search to the closing. When looking for a Modern home, it’s even more important to find a broker who is on the same page as you and who knows how to conduct a targeted search.
We hope these reminders fair you well, but even more can be done in our current market! In fact, buyers are getting even more aggressive in 2021 by releasing earnest money up front, etc. We’ve been there, and done that, in Seattle’s aggressive Modern market over the years. Let us help you.
Motivated to get going on buying your new Modern home? Work with one of our brokers and we’ll find the Modern home that’s perfect for you. Contact us!