Homebuyers who provided money had been a whopping 334 % extra more likely to win a bidding conflict than those that selected to finance their buy, in accordance with a report from Redfin launched Monday.
On the subject of bidding wars, money is king in accordance with a brand new report launched Monday from Redfin.
Homebuyers who provided money had been 334 % extra more likely to win a bidding conflict than those that select to finance the acquisition, whereas those that waived the financing contingency and performed a pre-inspection had been 31 and 25 % extra more likely to win bidding wars, respectively, in accordance with the report.
With traditionally tight stock resulting in a brand new excessive in bidding wars amid the spring homebuying season, it’s extra vital than ever for patrons to know what methods will assist them come out on prime.
January 2022 is on report as essentially the most aggressive month recorded by Redfin, with 70 % of houses dealt with by Redfin brokers leading to bidding wars. Final 12 months noticed 30 % of houses promote above listing worth, whereas the newest information exhibits 43 % of houses bought above listing worth in February 2022.
Whereas some predictions noticed bidding wars fading as extra stock got here on-line, the market is now mired in uncertainty.
Brokers ought to be ready to teach their purchasers by the bidding conflict course of and put together them for the value escalating considerably above asking, the report states.
“I let patrons 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 worth,” Fort Value, Texas-based Redfin agent Amanda Peterson stated in an announcement.
It’s additionally as much as brokers to advocate for his or her purchasers, in accordance with the report.
“If a purchaser has a low down cost or one other situation that doesn’t sometimes win a bidding conflict, I’ve had success explaining patrons’ distinctive conditions to the itemizing agent and making it clear that their funds are dependable and the deal will shut,” Peterson stated.
Patrons who’re unable to make a money provide may wish to think about different methods like waiving the financing contingency and conducting a pre-inspection to make their provide stand out, in accordance with the report.
