Bidding wars is a word homebuyers do not want to hear. However, it has been a very real presence. But, are the tides turning?
Absolutely! Bidding wars are a dream come true for sellers. They drive the price of homes up and can even result in receiving a final price higher than the list price. However, a bidding war is not the ideal situation for a buyer. This week let’s take a look at how bidding wars benefit buyers.
What is a Bidding War?
A bidding war takes place when multiple buyers make offers on the same home. Each potential buyer tries to outbid everyone else, which, as mentioned, increases the final sale price.
This unique situation is undesirable to buyers because:
- Valuable time may be spent on a home that is lost to another offer
- The final price typically is higher than it would have been in a non-bidding war situation
- Cause unneeded stress
Why Has Florida’s Housing Market Seen an Increase in Bidding Wars?
Supply and demand are the primary reasons we’ve seen a higher number of bidding wars. With Florida’s severely restricted inventory over the past year and a half or so, there have been multiple interested buyers competing for a single piece of property. However, according to Florida Realtors, the tide may be turning.
A Reprieve for Buyers in the Future
Recently, the housing market has begun showing signs of returning to normal with reports of more inventory and a decrease in prices, both of which result in fewer bidding wars. As inventory increases, potential buyers have more options, meaning less competition per property.
This spells relief for homebuyers who have been priced out of the market due to fierce bidding wars. Since the pandemic’s peak in April 2020, the bidding war rate has dropped an average of 74% across the nation. Some cities are seeing a higher percentage of bidding wars, and others are lower than 74%. In Orlando, the bidding war rate remains above average at 77%.
However, it is essential to keep in mind that this is a gradual process. Home prices are still elevated across the state. Only time will tell if we reach pre-pandemic normalcy in terms of inventory, prices, and bidding wars.
Check out these tips for beating out the competition to get the home of your dreams!
Take Advantage of Experience
As a buyer, it has never been more important to choose a Realtor with a wealth of knowledge and experience than it is right now. Gitta Sells has over 32 years of expertise in Lake Mary real estate. She and her team know how to best navigate a multiple offer situation so that you have the best chance at having your offer accepted on the home of your dreams. Feel free to reach out with any questions you may have at email@example.com or 407-330-2181. Let us show you how the home buying process is supposed to be!
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