Homebuyers who offer all cash improve their chances of winning a bidding war by 290 percent, according to a recent report from Redfin. That makes it the most effective strategy during a bidding war.
The report is based on homebuying data collected from July 2020 to February 2021.
The hot housing market makes successful bidding strategies even more important. Nationwide, 56 percent of Redfin offers faced bidding wars in January, the ninth month in a row that more than half of the home offers written by Redfin agents faced competition.
“Offering all cash is usually an effective bidding-war strategy, but the market is so hot that even the No. 1 strategy has evolved this year,” Orlando Redfin agent Nicole Dege said in a release. “All-cash buyers used to be able to go in a little below list price, but now I’m seeing a lot of cash offers that are at list price or higher. Anything below list price, regardless of the terms, just can’t compete.”
Waiving the financing contingency is the second-most effective strategy, according to the report, improving odds of winning a bidding war by 66 percent. Including an escalation clause, waiving the inspection contingency and conducting a pre-inspection had no significant impact on the outcome of a bidding war. That could be because those strategies are common in a competitive market.
Redfin agents say that in some areas, competition is so fierce that homes are selling for hundreds of thousands of dollars over asking price.
“I do my best to help my buyers identify what the seller is most looking for in an offer and try to make that happen,” Spokane, Wash., Redfin agent Rachel Wilson said. “It’s important for buyers to sweeten their offer in any way they realistically can. Sometimes that’s more cash, sometimes it’s waiving contingencies, but other times it’s a matter of figuring out what the seller wants, like a fast close or a provision to allow the sellers to rent the home back for a few months.""strategy" - Google News
March 26, 2021 at 10:38PM
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Report: All-cash offer best strategy in bidding war | News - The Title Report
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