The real estate market in and around Winchester, VA is competitive right now. A lack of inventory over the couple years has pushed prices higher and created an atmosphere where buyers are going against multiple other bidders.

For buyers who are just entering the market or for those who have lost out on one or several properties, I have a few tips for moving forward in this environment.

Work with a Pro to Know the Market

Working with a professional can be the missing factor determining whether you will win or lose in a situation with multiple offers. Someone like me who is constantly surveying the market will be able to answers questions like these:

  • Are homes selling over asking price?
  • Are seller’s underpricing to encourage multiple offers?
  • What are similar properties selling for?
  • An experienced agent, who you trust, can help to determine appropriate value based on the current market trends and can assist in negotiations and advice throughout the process.

Come In a Bit Stronger in the Beginning 

In a situation where I am able to understand we’re entering a situation where there are multiple offers, it is important to come in strong if you’re serious about acquiring the property. Some will recommend always coming in low, which serves its purpose at times, but knowing when to come in with a different negotiation strategy can save you a lot of time and keep you in the mix. For example, if the property is priced appropriately and is expecting multiple bidders, coming in with a low offer may have you quickly disregarded in the seller’s mind for not being serious enough.

In a multi-offer scenario, many agents will suggest countering all the offers, but this is up to the seller entirely and will vary depending on the situation. They may or may not choose to counter across the board, or they may only counter the best offers and/or accept the best initial counter. Experience and diligence is key when approaching this type of market, as the perfect opportunity may slip through your hands.

I’ve seen first-hand, especially here in Winchester of late, that sellers need to see the buyer is serious about buying the property. One of the best ways to do this is to come in strong from the get-go.

Come In Simply as Possible

If you’re feeling strongly about a listing in a tight inventory market, it is wise to make your offer as simple and clean as possible. Ideally, package all contingencies together in the most organized and coherent way possible to improve your odds. With multiple offers on the table, a seller may resort to taking the offer which requires the least follow-up, paperwork, or proof of funds.

Be Flexible With the Sellers

Sometimes people seem to forget some elementary things. I always make it a point to contact the seller to find out what they are looking for and try to reconcile those needs as best as possible with the buyers. Oftentimes, this little extra bit can help finalize the perfect deal.

For example: Do they need a longer escrow period to accommodate time for their next residence?   Do they want to close quickly because they have already purchased another property to move into? Sometimes price and financing aren’t the most important thing, but knowing the right questions to ask at the right time can be.

For me, a home is an incredibly personal purchase for both buyer and seller. Taking the time to meet face-to-face or send a personal letter will let them know how much you love their home and how much it would mean to purchase the property. It also shows how serious a buyer you are. I am mindful to keep a personal touch to this business, and this extra perspective can really make the difference in a multi-offer market.

Don’t let your judgement get clouded

With all this being said, it’s easy to get too caught up in the bidding war process. It’s important to stay level-headed and have outside counsel to prevent any potential rash decisions. Setting expectations and limits beforehand ensures a comfortable process and terms that won’t result in later remorse.

Talking with your real estate agent to be sure that you’re not over-bidding just for the sake of winning. I’ve seen over-eager buyers later think and feel they’ve overpaid once you enter escrow. Coming in strong doesn’t mean doing so at the sacrifice of your own goals and set limits.

Be prepared to hear back.

If you’ve come up to your highest price and terms, you may not immediately get an accepted offer. However, that doesn’t mean it’s over.

If you’re at the top of the sellers potential buyers list, you may be offered a backup position where you are the first to get the property at your final offer terms or better. Things fall through, and it’s important to know how to gauge the leverage that this opportunity may offer. I have years of experience with negotiating, and I love situations like this. If the seller was depending on the sale to go through and found themselves out a buyer, you’re now in the perfect place to close on your home, possibly with favorable terms for you. 

Stay Positive. 

I always try to keep my clients in high spirits. Oftentimes, especially with market trends as they are in Northern Virginia, it can be quite difficult or frustrating to buy a home. Inventory levels being low as they are can cause buyers to repeatedly lose out on homes before the right one sticks. As your real estate agent, I can assure you I will stay by your side through this process and keep us moving along in the right direction with the right mindset.

Multiple-offer situations are arising regularly around Winchester, Stephens City, and the Shenandoah Valley region. Working with someone you trust and respect can take a lot of stress and worry out of the process.