Combining strong demand and lack of housing supply, the Phoenix Real Estate market is seeing multiple offers (or “bidding wars”) on many of our new listings. While our clients are glad that their new home purchases should result in immediate appreciation of the property, that feeling does not go very far in offsetting the pain of trying to win a bidding war or losing bidding wars on multiple occasions. So, here are a few thoughts on how to win a bidding war:

  • Be Prepared – Do anything up front that can help prepare for fast decision-making. Getting homework items out of the way up front should also allow for better decision-making at the time of contract. Completing items such as loan prequalification with a lender, real estate disclosures, and anything else that would prevent the writing of a real estate contract, will allow your realtor more time to focus on getting and presenting your offer to purchase a property.  
  • Avoid Under Priced Homes – Unfortunately, in any market there are items that are overpriced and items that are underpriced. A savvy realtor should be able to point out the overpriced and underpriced properties. With low inventory, underpriced properties inevitably end up in bidding wars. By focusing on properties priced more at the market, home buyers are likely to avoid the bidding war and get better terms in the contracts that are negotiated.   
  • House Shop During the Week – In real estate, the primary time for buyers to shop for homes is Saturday and Sunday due to weekly work schedules. However, most buyers forget about that lunch break or an extra 30 minutes before or after work, where the viewing of a couple of properties is possible. Sometimes, buyers can get a hot property under contract before the weekend and before any other buyer ever sees the home. 
  • Don’t Hesitate – Last but not least, when you see that great property, don’t hesitate. While one buyer is hesitating, another buyer is likely to be writing the contract. If it is a Saturday or Sunday, then there could be two buyers writing a contract. 

Maybe you are a first-time home buyer needing help understanding the logistics of your first home purchase. Or, maybe you are looking to move up to a bigger, more spacious home. We, at the Thompson Group, pride ourselves in helping you search the MLS to find that special home that will be enjoyable for years to come! Please contact us  at www.MyAZHouse.com or 602-753-0177 for your private, no-obligation consultation.