There is currently a limited inventory of home listings in Nashville. Naturally, this makes for a nice housing market for sellers, but what does that mean for potential homeowners looking at houses? It means that acting fast may not be enough. Buyers in Nashville may find themselves in the midst of a bidding war.
What is a bidding war exactly? It’s when multiple homebuyers are interested in the same prpoerty and mutiple offers are being made on it. This puts the seller in the enviable position of selecting the best offer. They don’t happen all the time, but bidding wars can be intense. Here are some tips for how to handle a bidding war.
Bidding War Tips for the Home Seller
Most home sellers dream of listing their homes for a slightly higher than average list price and then having an amazing bidding war that quickly follows. This is not a likely scenario. Instead, home sellers need a strategy for creating interest and a possible frenzy, which is why working with a top real estate agent is so important. Here are some ways to lure potential home buyers to your listing:
- Price it right – One way to get mutiple offers is to list the house for slightly under the market value. Home buyers are all looking to get the best “deal” out there and by the time muliple offers are made, you would be back up to the comps in the neighborhood. Be warned though – this one only works in an area where houses are selling fast.
- Stack open houses – Host a broker open house, where real estate agents are the ones who come to view the property. Having them get familiar with it makes it easier for them to sell it. Follow up with a well advertised open house for the public. Schedule your house showings back to back so that buyers have the chance to see each other coming or going. It creates a sense of urgency for them to see other interested parties.
- Stage it – It’s a well known fact for selling houses: the less clutter and cleaner the house, the more likely it is to sell. Set the stage for the buyers to envison themselves in the home. Make it cozy,inviting and free of too many personal items, and you may just get those mutiple offers.
Bidding War Tips for the Home Buyer
You’ve been to the open house and scheduled another showing, fell in love and made your offer. But guess what? You aren’t the only ones interested in that listing. You’ve been told that multiple offers have been made. Now what? Here are a few tips for getting through the bidding war process when you’re the one wanting to buy:
- Have the highest offer – This is obviously the way to guarantee you win the war. If you know the area well enough to know what top prices are and you can both afford it and feel the property is THE HOUSE for you, then perhaps offering the top bid is right for you.
- Know how to walk away – Buying a home is an emotional process. Finding out someone else wants the same listing you do can cause you to overreact. Go ahead and set your top price mentally before you make your next offer and accept that you may need to walk away from it.
- Connect with the seller – Before you go knocking on doors to introduce your self, just consider the old-fashioned letter. Including a letter to the home seller about why the property calls to you can sometimes make a difference, particularly for families who want their home to go to another family.
Even with a low inventory in the Nashville real estate market, a bidding war is not part of every home sale. However, there is one tip that helps both a buyer or seller in the event of one: use an experienced realtor. A skilled agent can help walk you through the entire process; they will know the market, how to make a fair offer and what price is too high for the area. Working with the real estate agent can take a great deal of the intensity out of the whole experience.
Are you looking to create a bidding war on the sale of your Nashville home? Want a great agent that has your best interest if you get involved in one? Call us today and we’ll be happy to help you! Deselms Real Estate 615.550.5565