How to WIN a BIDDING WAR on a HOUSE without being STUPID
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- Опубліковано 19 чер 2024
- Getting your offer accepted on a house can be extremely difficult with low supply and high buyer demand especially with very little affordable housing. In this video, we discuss how to win a bidding war on a house in this housing market without waiving home inspection, waiving appraisal and putting your deposit at risk.
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🏠 - First Time Home Buyer Course - www.becominghomewise.com
✅ - Get a Referral to a Mortgage Lender or Realtor - www.jebsmith.net/referral
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What are you seeing in your local real estate market? Are buyers doing whatever it takes or are they being more conservative? Are you a first time home buyer buying a house? If so, how are you structuring your offer to stand out and win the bidding wars on a house? Let me know in the comments.
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Jeb Smith (huntington beach Realtor/orange county real estate)
DRE 01407449
Coldwell Banker Realty
➡I N S T A G R A M ➳ / jebsmith
#BiddingWars #HousingMarket #RealEstate - Розваги
Hello everyone, I am in California in the Temecula area and bought a home going 30,000 over listing as this market is over or around 100,000 over listing. The way I won our bid was letting the sellers stay in the home for free for an extra 17 days and letting them take all Appliances. Also the sellers like that I had a significant down payment through a 1031 exchange account. Good luck to everyone this is very hard to do after looking about 38 homes 16 bids my wife and I finally won our dream home
My wife and I closed on our first home on the 24th. Your channel has had a HUGE impact on our thinking going through the process. I will continue to watch and support your channel. Cannot thank you enough
That is awesome! Congrats to you both. I'm glad that I was able to provide a bit of insight. Thanks for the support.
THUMBNAIL game on point!
😂🤦♂️🙏
Thank you for all your grounded in wisdom advice. I followed a lot of your videos and I successfully closed on my home yesterday. My lender was the best communicator so I provided all he needed quick, I put on an offer with an FHA the same day of the open house only offered 6k above pricing. At the open house I spoke to the listing agent who was so kind and heard my need of a home. He put in the word for me to the seller, the seller was also a good hearted man and he took my offer. Turned out the appraisal came back at offered price. I am still speechless of what I really paid out of pocket at closing on a colonial 4 bedroom and a top notch school system in a seller market!! Again I heard all your advice and finally I got my home. And you are absolutely right my home was sold as is, yet I got seller concessions at the end, nothing major to repair but I was surprised that he agreed to help.
Definitely found this insightful. I especially liked the lender approach. Everything else I’ve learned and tried but never had the lender call. What I’ve noticed is the more liquid your buyer has, the more likely you’ll get your offer accepted especially when it comes to appraisal. Phone calls aren’t normally a win for me as most agents are like myself. If you’re a listing agent, you get so many phone calls and by the time the offers are being decided you don’t want talk to anybody.Unless…you have that rapport built already. I can’t wait till we can start networking (face to face) again so you can get ahead of the game with meeting fellow realtors.
Thank you for this! I appreciate your videos as they’re really informative and help newer agents like myself.
Thanks Rebecca. Good luck out there, it's all about those relationships.
I’m a lender & make YT videos too. And this is so spot on. Making many phone calls to listing agents right now.
Get it.
Great insights. We just lost an offer on our dream home despite having the highest offer with our escalation clause due to the appraisal contingency. We didn't think to have that in place and seller took a lower offer with no appraisal contingency (they also didn't approach us to ask if we could negotiate on that - we would have!)
We now have that waiver in hand. Hard lesson learned- wish we would have known this 24 hours ago!
Hey everyone I’m in California in the Central Valley. I’m the process of purchasing a house it’s been a very crazy market I put several offers on homes and got outbid many times. A suggestion my realtor had was to put multiple offers on different homes and put a appraisal gap on the contract. 2 weeks ago my offer got accepted but we had to put a offer of 25k over asking price.
Sounds pretty familiar.............Are you okay with your purchase? Thoughts? How many offers did you make?
Well I got 2 of my bids accepted on Monday So i had to pick so i did Well by Midweek my inspector goes in and i go to under writer Its going fast then boooooommmmm Inspection comes back with 52 pages So they said NO to the repairs and major repairs is way out of my scope So we are grabbing all the estimates and see if we can negotiate BUT I am willing to walk at any moment The sellers do not want to back on the market So this house buying as been one big pain in my butt
Great info!
Thanks Jason
I agree with Jeb on here.
I'm in Hawaii, on Oahu, west side of the island. What works for my buyers are a combination of appraisal clause where buyers offer 10-15k above asking, then cover the appraisal shortfall, should there be any; buyers waving the cleaning and junk removals; offering to reimburse seller for actual costs of termite inspection and report as well as survey; introducing my buyer's loan officer to the selling agent and getting my buyer's loan officer to make the selling agent understand that the buyers are highly able to close the deal. One thing on the appraisal shortfall though, it is highly important that you research what's been selling in the area lately and for how much exactly, or your buyers could end up covering a big appraisal shortfall, which isn't good. Also buyers submitting proof of cash funds, ready to go, in case there is an appraisal shortfall.
Appreciate it. Thanks for sharing, great info. I was just in your area in ko olina about 2 weeks ago.
Thank you Jeb for all the information and advices you have given me these past five months.We opened escrow today after a long search.Big props to you and Josh for going live on Wednesday to answer my questions.😊👏
Awesome, You're welcome and congrats!!!
Shopping in North Carolina. They have something called Due Diligence Fee. If your offer is accepted you owe that fee to the seller. Apparently in normal times this fee is $100-$500 but right now buyers are offering $10k-$50k to be competitive. During the DD period you send out the inspectors and you can back out but lose that money. Normal times you are out $100 but now you better pray there are no serious issues with the property. On top of that people are waiving appraisals and having to cover gaps out of pocket. Anyway, my strategy is to only make fair offers because if we all chilled out then the market would not be as insane.
We were looking into relocating there. I remember first learning about that DD fee, that’s crazy that it’s gotten so high. 😳
@@melowely Our agent said agents are pushing for laws tot limit DD but that et probably would not help buyers now.
I'm assuming that's like the escrow deposit? I'll have to research this a bit and cover it in a video.
@@JebSmith There is a DD fee and Ernest Deposit. During the DD period you setup all your inspections and if anything comes up you can back out but you lose that money. After DD period then Ernest Money kicks in which you can lose if you back out before closing. Basically there is panic buying going on similar to the toilet paper shortage of 2020.
Hey Jeb. Great info. Question on escalation clause as I’ve not experienced this yet.
Aren’t you depending on the listing agent being truthful of the price of another offer? What I mean is I’ve experienced agents tell my agent if there are other offers but don’t tell the prices. At the most will tell her “your in the ballpark”.
In short, can the listing agent … lie? And say there was another offer at this higher price and you buy at your limit of the escalation clause? Would that be just unethical or against the law?
Thanks
Good point Fahad, You're asking for proof of that offer with the escalation clause to prevent that from happening. So something like this "Buyer willing to pay $1,000 higher than the highest offer up to $325,000 with proof of the offer"
thanks Jeb, I closed on a single family home in Alameda county, very hot market in the bay area. I waived appraisal and inspection contingency. agreed to pay county taxes at closing and to close in 21 days. my agent didnt know the other agent but she said one of her skills is making sure the seller’s agent remembers who she was. she is pretty good at joking and being direct. she also made sure they knew my situation and had my lender call them.
That's awesome............congrats! Sounds like your agent knew what to do!
@@JebSmith yep, and i waived inspection contingency cause of the property disclosure that has their inspection done since it’s in cali. I felt comfortable with it
Hey Jeb, if I incorporate an escalation clause (up to a cap) into my offer, is the listing agent obligated to provide proof of their highest bid if they accept my offer?
You need to make sure you include that statement as part of your escalation clause asking for proof of the offer.
BEST ADVICE: Move on. No house is worth getting into a bidding war. There will always be another one. As a recent seller myself ... that is the seller's listing agent strategy ... hoping for buyer's to fall into. It's become a dirty business folks. Also, the buyer's agent is not necessarily on your side ... remember that. Real Estate agents make this process too emotional. It's a business transaction.
Residential Real Estate has never been a business for anyone but investors. Buyers buy emotionally and justify logically, they always have and they always will.........If your agent isn't on your side, find a new agent. There are professionals out there that want the best for their clients.
@video garage very good point u hit the nail in the head, we had an agent that were working with, but when we decided to put a hold to buy a house with this CRAZY market. He lost interest and never heard from him again. I'm not saying every agent is like that but as a buyer that is a never good experience.
I’ve seen sellers put an artificially low price to create a bidding war. The last house I made an offer on was $3K over asking price. The realtor called me the next day and told me the seller wanted everyone’s highest offer. I told the realtor I don’t play games let the other bidders have it
Yeah don't get into a bidding war. 2 months later we are seeing less of those. Let other people over pay and cry a year from now when the value of their property has dropped.
@@John-yv6voSame here. I absolutely hate this! If I bid *over* asking on a house, why come back and ask for an even higher offer??? Count me out!
I put two offers on two homes both got accepted but the one I decided to take which it had the same out of pocket Expense on both offers was i will pay extra 10 grand out of my pocket if home value didn’t meet my offer.
Nice, congrats!
Jeb you’re a smart guy.
Thanks for the support.
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They always want buyers to waive all contingencies how can you win on that ?
Not always.....I'm representing a listing right now where we accepted an FHA offer without waiving any contingencies.
@@JebSmith that’s awesome yes that how it should be not sure how it got to this market that they want buyers to waive all contingencies and if we don’t they don’t accept offers
Can you do a video on HOW to turn a blind-offer negotiation into a bidding opportunity?
The biggest takeaway I'm getting from all of your videos is get with a professional lender to make sure you have experience behind you. Considering I'm getting ready to try to buy a house, it's good to know where to start.
Sounds like my advice is coming through loud and clear. Great place to start.
Offer to buy the sellers a new home and pray to the gods that they accept your offer and with 60 day leaseback for $1.
🙏
Could you put time stamps in the description below with a subject line that starts your new conversation point please.
No time stamp just watch the whole videos
Just watch on x2 speed.
@@Josekeomany was looking for tips i didnt already know. Would seem like a waste of time. Would rather click off of the video.
Cash offer helped me get an offer accepted!
Nice! I'm sure it didn't hurt. congrats.
Is a cash offer the whole asking price?
@@shahrazad3787 Not always. In my situation we offered less and got it accepted.
Jorgegrealty. Very nice .congrats
I don't think any lender would take time to write such a letter ...unless she/he is my sister, brother, etc.
My lender did...didn't help us win our last bid but hopefully it will shine a light at some point.
1
guaranteed $10,000 over appraisal not to exceed $260,000.
Nice!
Thought it said “how to win the Biden war”. I clicked so fast.
maybe I should change it to get clicks