Incite a Bidding War: How to Get Multiple Offers on Your Home in 2021.
The housing market is hot! With the supply of homes hitting record lows nationwide, prices are skyrocketing, and homes are getting snatched up as soon as they become available. If you’re selling a home, you currently are in a prime position to attract multiple offers and possibly incite a bidding war if you play your cards right.
But even in a seller’s market, where there are far more buyers than homes for sale, there is no guarantee your home will attract multiple offers. So, how can you position your home to attract as many interested homebuyers as possible and maybe even incite a bidding war? Keep reading to find out.
Have a great real estate agent and understand your market.
First things first, to set your bidding war strategy in motion, you'll need the help of an experienced real estate agent to guide you through the home selling process and the current housing market. Seasoned real estate agents know the in's and out's of the market and have the necessary connections to attract serious buyers and multiple offers. Managing a bidding war is an intricate process, and having a real estate agent on your team will help stir up the necessary excitement to generate buyer's interest.
While you can't control whether your region is in a seller's or buyer's market, do your due diligence by speaking with an experienced real estate agent to better understand the current market. An agent can bring knowledge and insights about your neighborhood to guide your pricing and marketing strategies. On top of that, you're able to keep your finger on the pulse of your neighborhood and respond to changes in trends, pricing, or competition that might impact your pricing strategy.
Establish your pricing strategy.
Getting the right price on your home is the spark you need to bring in multiple offers and ignite a bidding war. However, the wrong move could set your listing back. Too low of a listing price, and it carries the risk of undervaluing your home, but too high, and it may cause buyers to lose interest and dissuade them from bidding on your home at all. To drive demand and get multiple offers rolling in, you need to price your home correctly from the get-go to reduce the number of days it sits on the market. This means listing your home at a fair market value or even slightly lower than it - in essence, pricing low to sell high. But whatever you do, don't undersell your property value.
This pricing strategy ensures that you catch the attention of as many buyers as possible. The buyers see an appealing price, become excited at the prospect of scoring a great deal, and puts in an offer for it. If the price is right, you should see multiple offers roll in. However, keep in mind that the price you're setting for your listing is not the price you think your home is worth or the amount you're hoping to get, but rather it's the price you're setting to encourage other buyers to bid higher.
Schedule a pre-listing inspection.
Having a pre-listing inspection allows you to attract serious buyers and gives you an advantage over other sellers before your home even hits the market. It's common practice for the buyer to request a home inspection as one of their contingencies when submitting an offer. However, by showing that your home has a pre-listing inspection report, you'll be able to leverage your negotiating power by being upfront about your home's condition and avoid the who-pays-for-what-repairs negotiations. This also allows you to get a head start on any repairs and disclose them to the buyer. Plus, if the pre-listing inspector doesn't find significant defects, the buyer may choose not to get their own inspection done and waive their home inspection contingency, saving both parties time. You'll want to limit the number of factors that'll cause buyers to walk away from the deal, and being able to address potential repairs before the buyers find them will make your home more appealing.
Put your best foot forward by enhancing your home’s curb appeal.
If you want multiple offers, you need as many buyers to fall in love with your home as possible. Buyers are more inclined to view your home based on its exterior appearance, and even if your interiors are stunning, a house that lacks curb appeal can cause them to pass on your listing. A few simple and budget-friendly projects can easily jazz up your home’s exterior appearance, but if you want to go all-out, consider hiring a professional such as Brilliant Colours Professional Painters to tackle the bigger curb appeal projects, such as window washing or roof cleaning. Ways you can enhance your curb appeal can include:
Make your home a "must-have" with staging.
A well-staged home can be the difference in enticing a buyer to click on your listing photo and scheduling a walkthrough - or passing on it completely. Staging aims to attract buyers' attention, and if multiple people are interested in your home, a bidding war may just be right around the corner. To place your home on a buyer's "must-have" list, hire a professional stager to make your home as irresistible as possible. Even if your home is well-maintained, staging can make a major difference in catching a buyer's eye. A professional knows how to incorporate design trends popular in your local market, and homebuyers want a home that reminds them of that Pinterest-worthy inspiration image. This is especially important if your home is older and going up against new construction in your neighborhood. Having your home professionally staged also helps buyers visualize themselves moving right in, making all the difference in getting them to make an offer.
Use listing photos to your advantage.
A picture is worth a thousand words, so if you're aiming to bring in multiple offers, make sure you're showcasing your listing in the best way possible with professional listing photos. Listing photos are powerful marketing tools, and high-quality, professional images are known to help sell homes quicker and for more money. A professional real estate photographer will capture each room at the best angle and highlight its best features, which can help distinguish your listing from other homes on the market.
You can also consider adding drone photography to your strategy to bring more value to your listing and to set yourself apart from other sellers. Aerial photos show your home from a unique perspective and give buyers a 360-degree view in a single shot. After all, homebuyers are looking through and comparing dozens of listings online, and if your photos don't catch their attention from the get-go, you could be missing out on clicks, showings, and, most importantly, offers.
Build up buyer interest before* listing.
You don't have to wait for your home to hit the market before generating interest; you can get buyers excited before even listing your home. Using this strategy will help increase the number of buyers waiting to view your listing. Plus, if they're serious homebuyers, they would most likely have already done their homework and are ready to make an offer as soon as they've seen your home in person. What's more, your real estate agent may be able to help drum up interest and get the ball rolling on your bidding war strategy by informing their followers on social media, sending out email blasts to their contacts, or contacting interested parties.
*Premarketing is not available in all locations, and is subject to local laws, rules, and regulations.
Include an interactive virtual walkthrough in your listing With a 3D Walkthrough, buyers can explore every nook and cranny of a home for sale without ever having to leave their homes. Not to mention, most buyers are now shopping for their homes online, so having a virtual walkthrough of your home gives your listing an immediate advantage with added convenience. 3D Walkthroughs can also expand your buyer pool by allowing your listing to be viewed in greater detail and in the best possible condition. To ensure you're highlighting your home's best features, prep for your 3D Walkthrough the same as you would for an in-person open house.
A quick tip — scheduling your virtual walkthrough shoot on the same day as your professional listing photoshoot will cut the cleaning time in half. You'll only need to clean and stage once for your house to be in picture-perfect condition.
Be strategic about your scheduled showings.
Fear-of-missing-out can be a key component of your bidding war strategy and can be used when scheduling showing requests after your home hits the market. Once your pricing has begun to catch buyers' attention, requests for showings should start trickling in. A way to maximize exposure is to ensure that your agent is attempting to schedule as many back-to-back showing requests as possible. If buyers see other potential buyers walking in and out of your home, this can incentivize them to start making an offer. This strategy can generate multiple offers as buyers now have a sense of urgency, knowing they have limited opportunities to secure the home after seeing the competition walk through the door.
Set a deadline for offers.
Setting a deadline can help quicken the offer process and indicate to buyers that you're serious about getting the house under contract. With the number of accepted offers increasing and homes being sold in one week or less, having a deadline may also prompt buyers and agents to think strategically about their offers to make them stand out. The amount of time you set to get the best offer possible will depend on your property's type and what the housing market is doing in your area. Your agent will help you set a date for reviewing offers, which will be shared with all potential homebuyers so they know when they have to submit their best offer.
Originally published by Redfin