The Knoxville real estate market has transitioned back into a seller’s market. Sellers out there are receiving multiple offers and new homes are not last long. For Knoxville buyers, this means the competition is fierce, and they need to act accordingly.
In a seller’s market, the rules of engagement are a little bit different for Knoxville buyers. When you’ve finally found the perfect home for you, there is a lot you can do right and a lot you can do wrong.
In order to set yourself apart from the competition, don’t do these 3 things when you get into a bidding war.
When sellers are getting multiple offers, they have their pick of offers. That’s the reality. If you don’t give them what they want, someone else will.
So, going in less that the list price and asking for closing costs and a home warranty, is not wise. As a buyer, you obviously have your things you need (like closing costs and a cap on purchase price). Still, that doesn’t mean you can completely ignore what the seller may need. When a seller is getting multiple offers, they’re going to find someone who is willing to give them what they want.
The trick to this is to consider what the seller may need from you in order to accept the things you’re offering. If you’re requiring closing costs, consider upping your purchase price to cover those. Or, consider dropping some of the extras you’re asking for, like a washer and dryer or home warranty. It’s those little things that can seal the deal in your favor.
When it comes to getting into a bidding war, it can be hard to not get carried away by your emotions. You found a house that you love and you want it, so you’re willing to pay the price in the heat of the moment.
But the question is, will you be okay with this decision later on?
There is a fine line with winning the bidding war and going completely overboard. If you get into a bidding war, it is important to draw a line of how high you’re willing to go and what you’re willing to give up.
Stay true to your limits so you don’t end up paying more for a house than your comfortable with.
When the competition is high, there is no going in with a low ball offer. That’s for times when the Knoxville real estate market is slow.
When the competition is fierce, go in strong from the start. Talk with your agent about some of the things you can include in your offer to make it more appealing to the seller. As your agent, they can possibly provide you some incite into what the seller is looking for and what they’re situation is.
Things like upping the purchase price to cover closing costs, leaving out unnecessary extras, picking a quick close date, and showing your a serious buyer (i.e. upping the earnest money and providing a pre-approval letter from a local lender) are all things that can sweeten the deal for the seller.
In a seller’s market, the rules are a bit different. You’ve got to go in strong at the start and move quickly, while minding your personal limits. In a market like this, be sure to give yourself enough time to find a house and if you miss a bid, know that another great house will be out there soon.
Are you thinking about buying a Knoxville home this year? If you are interested in buying a home in Knoxville or in the greater Knoxville area, please do not hesitate to contact us. Rick can be contacted at 865-696-9002 or via email at [email protected]. Kati can be contacted at 865-392-5880 or via email at [email protected].