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How to Win the Real Estate Bidding War Without Overpaying

There’s a saying that a property is worth whatever someone is willing to pay. Here in the South Tampa Real Estate market buyers are willing to pay more. In our capacity as a seller’s agent, we are experiencing multiple offers in all price ranges. People are willing to pay asking, if not above asking price because interest rates have come down so low. From my experience, properties that are priced well aren’t staying on the market more than a week. Sometimes only one day.

If you wait much longer to buy a home, you may wind up paying even more.

How to get your offer accepted.

I wouldn’t be afraid to offer a higher amount than the price a property is listed at, especially if your Realtor says there are multiple offers on the home. But how much more? There’s no crystal ball, but in general people are willing to pay up to 5% more than list price for a desirable property.
Offers without repair contingencies are also enticing to homeowners especially if the owner has already relocated and can’t deal with coordinating contractors and getting bids. Unless you see something blatantly wrong with a home, it may be better to submit an “as-is” with right to inspect contract. This will allow you to cancel under your inspection contingency period on most home purchase contracts.

Why would you risk offering more?

First, if the property doesn’t appraise, you’ll be able to renegotiate or back out of the contract.  Just make sure you have an appraisal contingency in the offer, even if you are paying cash.  If it doesn’t appraise, the seller will most likely sell it for the appraised value.

Why has the Tampa Real Estate market become so competitive?

Our inventory is down to five months, which is half of what it was this time last year. What that means is that if no new  homes came on the market, we would sell every home on the market in five months! 

Our average sales price is up by $16,302 as well.  You can see the latest MLS stats here.

How does a seller create a bidding war?

From what we have been seeing, my opinion is that sometimes sellers and their agents are pricing desirable homes on the low side, below market value, to create bidding wars and drive the price up.  Sellers could wind up getting the same, or a little more, as they would have if they’d priced it higher. Seems like a “game,” but this strategy is what’s working at the moment.

What are your thoughts? Are you in the bidding war game?

If you’ve been thinking of selling your house and want to schedule a consultation you can contact me here. 

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Written by Rae Catanese, Realtor

Licensed Realtor since 2002, Tampa Bay’s own Rae Catanese regularly gives expert advice and insider tips about the Tampa Bay real estate market via her blog, The Tampa Real Estate Insider. If you are thinking of buying or selling a home in the Tampa, St. Petersburg or Clearwater areas-then this blog is for you. I typically post articles once a week. To make sure you don’t miss my newest posts, you can subscribe here! Have a real estate question? Email me here!

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