The Seattle Times just released an article placing the Puget Sound Region second in the nation for the highest rate of bidding wars. This is second only to the Bay Area, beating out both Orange County and L.A.
Which begs the question of how does one compete and be successful in this market?
1. Organize Your Team
Have your broker, lender, home inspector (including sewer scope, septic systems, and wells) all lined up and ready to go. You will want to get a full approval on your loan, which is much stronger than a pre approval. Additionally, pre inspections have become the norm in this market, so be prepared to have this done quickly. I can provide you with the names of reputable lenders, along with home inspectors who will and can go to any house the next day.
2. Hire a Local Lender
Do not work with banks such as Bank of America, or Wells Fargo for your mortgage. They are great at your typical banking, but when it comes to underwriting mortgages, their reputation is horrible amongst brokers, because they do not tend to know the local market and the pressing needs during intense bidding wars. Hire a local reputable lender who can close your loan in 30-days. If your offer is in line with another offer with the exact same price and terms, a local lender can make all of the difference.
3. Be Fast
2. Hire a Local Lender
3. Be Fast
I cannot express enough how important it is to hire a broker who is "on it," and who can move quickly for you. You will need an experienced broker who knows how to win in this market. Also, if you see a house that you like, and you want to write an offer before the "review date," do not hesitate to ask your experienced REALTOR® to find out if the seller would be willing to look at offers before the stated review date.
4. Waive Contingencies
Doing as much homework as you can upfront will help you feel confident in waiving certain contingencies. Waiving inspection once you have pre inspected, and waiving the neighborhood review period are a couple of examples. There are many more contingencies, and every offer is different so you need to decide what is "worth" it. Some contingencies are backdoor ways out of the contract, which listing agents know about, and so make sure your broker knows about these.
Multiple offers occur 75% of the time in real estate transactions in the Puget Sound Region, so educate yourself, read as much as possible and ask a lot of questions.
