Bidding Wars: Are They Still Happening?
Bidding Wars in Sacramento
If you've been in the market to buy or sell a home in the Sacramento area recently, you've probably encountered the issue of multiple offers, also known as bidding wars. So, how does this process work exactly, and what does it mean for everyone involved? Check out this quick video:
Whether you're interested in Sacramento, Roseville, Rocklin, or Granite Bay homes for sale, this issue of bidding wars is pretty common at the moment. Our market has exerienced low-listings inventory levels again this year, which means that home buyers often have relatively few options when looking at homes for sale. So, it's a supply/demand thing at its core, and it can translate into multiple buyers trying to buy a home listed for sale - all at the same time.
When we've done Open Houses lately, we've often seen several, sometimes dozens of potential buyers who are anxious to see the home - right away. We've seen it on the listing side as well as the selling side, and it has come up on a lot of the deals we've worked on in the past year. Here are a few recent examples:
The frenzy that often surrounds a deal these days puts pretty intense pressure on potential home buyers to up their bid, and home prices can easily go tens, even hundreds of thousands over the list price. Buyers are also tempted to waive certain contingencies up front to strengthen their offer, and cash buyers often offer to close quickly in order to present sellers with a deal that seems too good to pass up.
There are other things that home buyers can do put their best foot forward; the point is that it can often be an emotionally-charged and frustrating process that you need to rely on your real estate professional to guide you through. It's nice to win a bidding war, but as a buyer you should probably think about setting some limits up front, and not get too caught-up in the moment and agree to a deal that is not in your best interest.
If you're selling a home, these multiple-offer situations are not all they're cracked up to be, either. It sounds good, but it can be challenging and stressful dealing with so many moving parts at once, and ending up with the best buyer is not as simple as it might seem. Again, your real estate professional can help you wade through this process, treat everybody fairly, and let you make an informed decision about which deal you believe is in your best interest. Pro tip: It's not always the highest price!
We've successfully dealt with these potentially sticky situations many, many times, and for both buyers and sellers. If you or anyone you know is looking to buy or sell a home in our market, contact us today and we'll get you moving!