Do You Recognize the Early Signs of a Bidding War?

A bidding war occurs when two or more buyers are vying for the same property. Bidding wars are not uncommon in today's housing market, especially in highly sought-after areas. If you’re looking for Mamaroneck real estate, it's crucial to be able to recognize the signs of a bidding war so that you can decide whether or not to participate. We created a list of five signs that a real estate bidding war may take place.

 

If the listing price is below the market value, this is often the first sign that a bidding war might occur. If the Mamaroneck real estate is priced well below its market value, there's a good chance that multiple buyers will be interested in buying that property.

 

While a low listing price may seem like a boon to a home buyer, it can be a quick lure into a bidding war. It may also mean there’s a reason to be cautious about the home, such as a location that is becoming undesirable (due to an increase in traffic, for example). Or perhaps there is something undisclosed about the home. Work with your real estate agent to learn why the listing price is below market value.

 

Another telltale sign of a bidding war is a property that has been on the market for only a few days (or even hours) and is already getting offers. If a property has been on the market for less than 48 hours, is already getting multiple offers, and is listed below market value, this should raise a red flag (I don’t like this termanology-its not a red flag-that sounds way too negative.. Although it doesn’t necessarily mean that you shouldn’t submit an offer, it means that you must be cautious as you go through the process. (and why cautious?? BC there is a bidding war?)

What makes a neighborhood popular or trendy? That depends on a variety of factors. If you have school-aged children, for example, then an outstanding school district or quality private schools in the area will be important to you. In Mamaroneck, 92% of the high school seniors are enrolled in AP or college-level courses, and college representatives visit the high school almost daily. That makes Mamaroneck a popular area for families to buy a home.

 

If you’re empty nesters looking to buy a condo for retirement, then your idea of the perfect neighborhood may center around luxury shopping and delightful brunch options. Either way, your preferences are what make a neighborhood attractive to you and others in the market who want the same amenities and lifestyle you’re seeking. Looking for Mamaroneck homes for sale is an excellent place to start.

 

If you’re set on living in a particular neighborhood, and you find yourself in a bidding war for a home that you love, consider writing a personal letter to the seller. If they have an emotional attachment to their home, knowing that you will love and care for the home just as much as they did may help turn the tide in your favor. (you are not supposed to write love letters anymore-please take this out)

When there are more buyers than sellers, the demand for homes in a given area will outpace the supply. This is a sellers’ market and is one of the biggest drivers of a bidding war. Your real estate agent can advise you if the neighborhood you’re interested in is currently a sellers’ market. Improve your chances of winning a bidding war by ensuring that your mortgage is approved — and be flexible about the closing date. A pre-approved mortgage shows the seller that you’re ready to complete the purchase as soon as possible; a flexible closing date gives the seller time, if needed, to finish the last-minute moving chores.

Your real estate agent can tell you if other offers have been made on the property. This information can give you an idea of how much competition you're up against and what kind of offer you need to make to win the bidding war.

 

If you have your heart set on a particular home, then be aware that you may need to increase your offer in a bidding war. Although this may be considered a last-ditch effort, it could help to bring about a more favorable outcome. Of course, there’s no guarantee that the other parties who also want the property won’t also increase their own offers. Ultimately, you have to decide just how much you want the property.

 

Note that even if these signs are present, there's no guarantee that a bidding war will occur. However, if you're interested in a particular property, be prepared for the possibility of competing against other buyers. Ask your real estate agent if the area you’re interested in has a recent history of bidding wars.

 

When you’re ready to look for single-family homes for sale in Mamaroneck, New York, reach out to Kim Formon. She knows the Mamaroneck real estate market, has a strong analytical mind, and possesses a keen ability to negotiate.

 

If this is supposed to be written by me this last paragraph doesn’t make sense..

 

Also do we have to focus only on Mamaroneck? I cover the Sound Shore. I’m not comfortable just focusing on Mamaroneck when Rye has so many bidding wars.

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