In a low-inventory market where homes are getting multiple offers, you may find yourself getting outbid over and over again. This can be incredibly frustrating, and you may be tempted to extend yourself financially, make an impulsive offer on a home you don’t love, or quit your home search. Since these options don’t get you any closer to achieving your homebuying goals, planning how to proceed when you continue to get outbid is essential. Read on for insight into what to do when you keep getting outbid.
Expand your location
When you’re searching for a new home, you may be set on a specific neighborhood and have no inventions on budging. However, if you have room to expand your search boundaries, you may open yourself up to significantly more inventory. For example, if you have to stay in your existing school district, but your child only has one year left, consider asking the school if your child can remain there for that remaining year if you move out of the district boundaries. Or, if you’re set on living within walking distance to the downtown area, but inventory is minimal, consider expanding your boundaries in exchange for adding five to ten minutes to your walk.
Take a break
Buying a house can still be stressful even in the most ideal buyer’s markets. This stress is only magnified in a seller’s market with limited inventory. If you’re been searching for an extended time with no success, consider pausing your search for a few months to recharge. When you revisit your search, you may be in a more motivated state of mind.
Don’t offer under the asking price
Competitive real estate markets often result in bidding wars, with all cash offers and offers above the asking price. If your offers are under the asking price, there’s a strong chance you may continue to get outbid. Collaborate with your real estate agent to determine if your best strategy is to offer the asking price or, in particular situations, over the asking price.
Find out if there are already offers
Before you make your offer, your real estate agent can find out if offers are already extended. Ask if your agent can find out from the listing agent if there are already offers on the property and if there are any points of negotiation that the seller would be willing to entertain.
Ask your agent if the seller has any other specifications
For some sellers, there are offer points that are equally as important as the asking price. See if your agent can find out these points, and you can use them to sweeten your offer. For example, the sellers may need a rent-back agreement. If you can stay in your existing home longer, you can include a rent-back clause in your offer.
Review the local comps
Carefully reviewing recent home sales to find out how many days these homes were on the market if they sold above asking price, and for how much over can help provide more accurate insight into the local market. Knowing these details can help you extend a realistic offer instead of guessing on an offer strategy.
