In a bidding war situation as we see in today's real estate market, doing everything you can to get ahead of the competition is a wise move. But what exactly does this mean for you? As a buyer, a low supply of housing coupled with a high demand for buyers means you have to be willing to navigate a highly competitive market where homes sell quickly and get multiple offers. This is what Realtor.com says:

“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”

— Realtor.com

In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That's because when you find a house and submit an offer, it will likely be against strong offers from other buyers. According to the most recent Realtors Confidence Index of the National Association of Realtors (NAR), houses today receive an average of 3.9 offers. This is the largest number of deals we've seen in January over the past five years (see chart below):

To help you navigate bidding wars with multiple offers, an expert realtor is the key. They know what has worked for other buyers, what sellers are looking for, and how to help you get ready when it comes time to make an offer. Here are three tips to remember to help you get the best deal possible.

1. Know Your Numbers​

Knowing your budget and what you can afford is crucial for your success as a home buyer. The best way to understand your numbers is to work with a lender in order to obtain a pre-approved loan.  Preapproval shows sellers that you are serious, which can give you a competitive advantage. You should also know making an offer at the home’s asking price may not be enough. Homes today often sell for more than their listing price. An agent can help you understand the market value of the home and what other homes are selling for in your area.

2. Be Ready To Move Fast​

Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes sell quickly, it is important to stay at the top of the market and be prepared to act quickly. Your agent will help you stay up to date on the latest listings and help you put together your best offer as soon as you find the home you want to buy.​

3. Make a Strong but Fair Offer​

​When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent to create a strong offer and use their expertise on which levers you can pull to make your offer as attractive as possible. One option is to wave some of your contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember there are certain contingencies you don’t want to give up, like the home inspection.

Bottom Line

Regardless of what's going on, your agent is your best resource to make a bid that stands out in a competitive market. Let's talk about what you can expect as a buyer and how to begin a successful housing search.