It may seem hard to believe, but bidding wars are back! Competition has increased in Metro DC real estate even amidst the current economic and global health situation. More and more homebuyers continue to flood the real estate market, and prices continue to rise, thus contributing to more competition with offers.
According to the NAHB’s Quarterly Housing Trends Report, “30% of active buyers reported getting outbid by another buyer in the second quarter of 2020, significantly higher than the comparable 18% share a year earlier.”
Bidding wars have been reported as most common for bargain-priced homes where buyers are forced to compete with real estate investors.
So, how do you make sure you snag your Metro DC dream home and outbid other interested buyers? How can you be certain your offer stands out among the rest?
Below are five tips to ensure you gain an edge over the competition in the Washington DC, Maryland, and Virginia area markets this year.
Don’t Lowball Your Offer
Above all else, make sure your offer is not insulting to the home sellers. Real estate experts often advise buyers in a competitive bidding scenario to submit their maximum offer first, not the offer based on what they think other buyers will do.
Set Your Walk-Away Number
At the beginning of your Metro DC home search, set the number that is your absolute maximum— your “walk-away price.” This will help you avoid getting caught up in the competition and paying more than you’re comfortable with as a final mortgage payment.
Being flexible will help you stand out as a willingness to negotiate closing dates or offering benefits to sellers can really set buyers apart. Can you close quickly? Work with the sellers on their move-out date? All of these compromises could help your position in a bidding war and ultimately, help you close the deal.
Getting pre-qualified to purchase a home in Washington DC, Maryland, and Virginia can eliminate a lot of headache for the sellers, as well as you as the Metro DC homebuyer.
This option shows the seller that you are able to actually close on the home. If you need recommendations on lenders or where to get pre-qualified in the Washington DC area, always ask your real estate agent! The Estridge Group is a wealth of resources for clients and can point you in the right direction!
Listen to Your Agent
Remember that your real estate agent knows the market and knows how to negotiate, especially in a multiple offer scenario. Try to set your emotions aside from the deal and take their advice. If you are serious about purchasing the home in DC, Maryland, or Virginia, they know how to get the job done!
Ready to get started on buying a home in the DC Metro? We are glad to help you find your dream home and formulate a winning offer!
Contact our team of experts at The Estridge Group today!