Homebuyers who supplied money have been a whopping 334 p.c extra more likely to win a bidding battle than those that selected to finance their buy, in keeping with a report from Redfin launched Monday.
On the subject of bidding wars, money is king in keeping with a brand new report launched Monday from Redfin.
Homebuyers who supplied money have been 334 p.c extra more likely to win a bidding battle than those that select to finance the acquisition, whereas those that waived the financing contingency and performed a pre-inspection have been 31 and 25 p.c extra more likely to win bidding wars, respectively, in keeping with the report.
With traditionally tight stock resulting in a brand new excessive in bidding wars amid the spring homebuying season, it’s extra essential than ever for consumers to know what methods will assist them come out on high.
January 2022 is on report as probably the most aggressive month recorded by Redfin, with 70 p.c of houses dealt with by Redfin brokers leading to bidding wars. Final 12 months noticed 30 p.c of houses promote above checklist value, whereas the newest knowledge exhibits 43 p.c of houses offered above checklist value in February 2022.
Brokers needs to be ready to educate their shoppers by the bidding battle course of and put together them for the worth escalating considerably above asking, the report states.
“I let consumers know what to anticipate and attempt to put together them, financially and emotionally. The house they’re touring will most likely promote for considerably over asking value,” Fort Value, Texas-based Redfin agent Amanda Peterson mentioned in a press release.
It’s additionally as much as brokers to advocate for his or her shoppers, in keeping with the report.
“If a purchaser has a low down cost or one other state of affairs that doesn’t usually win a bidding battle, I’ve had success explaining consumers’ distinctive conditions to the itemizing agent and making it clear that their funds are dependable and the deal will shut,” Peterson mentioned.
Patrons who’re unable to make a money provide can also wish to contemplate different methods like waiving the financing contingency and conducting a pre-inspection to make their provide stand out, in keeping with the report.