If you’re a seller talking to an Orlando real estate agent, you probably already know how common bidding wars are right now. Investors are more interested
in Orlando than ever before, and homes for sale in Orlando and the surrounding areas are very appealing to families who are shifting their mindset. What is truly important to the average parent or family has changed radically in the past few years.
Bidding wars are still very common, and they put a lot of pressure on the buyer to offer more money or fewer contingencies to close. This can obviously cause a problem for buyers looking for the best deal or hoping to get their dream home without a fight.
These are the early signs of a bidding war. Keep a lookout for these before you put an offer in on any home or property on the market, and know what to expect. You don’t have to steer clear of a bidding war entirely, of course, and a good Orlando real estate agent can help you navigate this terrain, but it’s important to know what to look out for. If you’re prepared going into the situation, you are far more likely to succeed.
Price is on the lower side
This is still a seller’s market and most home sellers know that. If you are looking at a home and realize the price is lower than market value
, there’s a good chance they want to start a bidding war.
A lower price point brings more eyes to the property and encourages quick offers. Even if the seller or Orlando real estate agent knows the property is worth more than that, they are counting on the fact that everyone else
knows it, too. Encouraging buyers to offer over the asking price or encouraging multiple offers at all will start a bidding war.
This concept confuses a lot of sellers, so it’s not always done - and it can be a risky decision if the seller isn’t secure in the property itself. If it were a buyer’s market, pricing below market value wouldn’t make sense. With so much interest in homes for sale in Orlando at the moment, though, the risk of no offers is extremely low.
There is a lot of early interest
Yes, the term ‘a lot’ is relative. Homes for sale in Orlando generally get more eyes on them in the first week of being on the market than somewhere in middle America, so this is where having a competent agent to guide you through the process can be helpful.
If the home is listed on an online marketplace and you can see how many people have viewed or saved the home, you should take note. If there are a hundred views within twenty-four hours when comparable homes have just 30, this is a good sign there is a lot of interest in the home. More interest will naturally mean more offers, which can lead to a bidding war.
A motivated seller can encourage a bidding war
Multiple offers don’t
, by definition, automatically lead to a bidding war. A seller can just as easily consult their Orlando real estate agent and choose the offer they like the most with the fewest contingencies or most earnest money.
A seller who is motivated is clearly motivated to get the most from their property, though, is going to encourage the bidding war. Homes owned by a single person or family that have been in the property a while are generally less likely to incite a bidding war, while homes owned by an LLC or flipper company have the most incentive to squeeze every dime out of the property.
Deferred showings can indicate a bidding war
Let’s say that you are a buyer and you look at a home you are interested in and that was just listed on Monday. It’s nearly perfect and you call your realtor to set up a showing. However, they’re not actually showing the house for several days – you can’t get into it until Friday at the earliest.
This is creating a demand for the product. You’re not the only buyer that is making that call or showing interest, and you’re going to spend the week thinking about everyone else that is waiting to see it. This rise in demand can make buyers think they are seeing something exclusive, and therefore be more willing to put down a more competitive offer or engage in a bidding war.
This is a sneaky tactic, and if you’re a buyer you may not even realize it’s happening. As a seller, this is an easy way to both not inconvenience yourself and get the most from your property.
Placing a deadline on offers
Another good way that you know the seller is interested in a bidding war is if they place a hard deadline
on your “best” offer. If all showings of the property are deferred until Friday, and they state you have until Monday at noon to make your “best” offer, the seller is serious about getting multiple bids and putting pressure on the buyers.
If there is no pressure, the buyer can take their time, view multiple properties, sleep on it and really consider. When there is pressure, homes for sale in Orlando get a lot more interesting, and you may feel the immediate need to put in a great offer just so that you don’t miss out. The funny thing is, if there wasn’t any pressure and you had time to think about it, you may not even be interested in placing such a large offer. The pressure and timeline make you believe it’s the right call.
Ready to buy?
Are you looking at homes for sale in Orlando and you’re concerned you’ll miss some of these signs? Maybe you’re actually a seller, and you are looking for an Orlando real estate agent who knows these tricks and can help get you the highest offer for your home faster, rather than waiting. Either way, working with an experienced agent like those at Core4 Group
is the best next step you can take. This real estate group has over 75 years of combined experience working with the best real estate on the market and can help you find your dream home, or sell your current property for top dollar. Call today to see how they can help.