How to Win a Bidding War to Buy a Home in Houston

To buy a home in Houston these days, youre going to have to go above and beyond. Paying list price often isnt an optionwith as many as 20 bids or more for almost every house that hits the market, youre going to need to win a bidding war to get yourself a home!

If that sounds like a daunting task, well, it is! Everyone trying to buy a home in Houston in 2022 is facing stiff competition. That means youll almost certainly need to offer over list price for a home to win. But when everyone is offering over list price, how do you win?

As an experienced Houston Realtor, I help my clients navigate the sometimes treacherous real estate landscape here in H-town. I know all the tricks to buying a home in even the most challenging markets, and I can help you win a bidding war to buy the home of your dreams.

Here are the top 5 tips to win a bidding war to buy a home in Houston!

1. Offer more money

First, its important to realize that if youre buying a house in Houston in 2022, you WILL be paying over list price. Quite simply, there are more people who want to buy a home in Houston than there are homes to buy. That means you need to make your absolute BEST offer right off the bat. I have seen houses sell this year for as much as 30,000 over list price, so if you want that house, offer as much money as you can possibly afford.

Related: Should You Submit a Backup Offer?

2. Reduce contingency dates

If your offer is matched by another potential buyer, there are other things you can negotiate on with the seller besides just price. Every real estate sales contract includes contingencies, such as the option period or mortgage underwriting, that have deadlines. Most sellers want to sell their home as fast as possible, and if you can make that happen by shortening your contingency deadlines, it might be an attractive proposition to a seller whos in a rush.

3. Waive contingencies altogether

It sounds crazy, but In todays market, any contingency can make your offer less attractive to sellers. If you really want to win a bidding war, it may be time to simply waive all contingencies. That means waiving an appraisal. It could mean throwing out your option period completely. Its drastic, but right now it can mean the difference between winning and losing a real estate bidding war in Houston.

4. Offer to pay sellers closing costs

Home sellers want the most money possible for their homes at the least possible expense. Part of the expense of selling a home is whats known as closing costs, which can include title insurance, taxas, fees, and other charges. By offering to pay a sellers closing costs, you can sometimes sweeten your offer beyond what someone else might be willing to do. Again, this is not the way things used to be done, but Houston is a hot market. This is a winning tactic for a house you need.

Related: 4 Reasons to Buy a House in Winter

5. Remember that cash is not king.

An old rule of thumb in real estate is that cash is king, meaning cash offers are more valuable to sellers than mortgage offers. Well, in 2022, thats out the window. Sellers want as much money as they can get for their property, and they dont care if its in cash, credit, or crypto! Dont assume a low cash offer will win a bidding war simply because its cashit wont! Regardless of if you’re buying with cash or the largest home loan you qualify for, make the best offer you feel comfortable with. The new rule of thumb is more is better.

If youve just started looking to buy a home in Houston, these tips may shock you. Thats common! The real estate market is absolutely crazy here right now, and the sellers hold all the power. There are no great deals to be had in 2022. If you want a house, you HAVE to be very aggressive in order to place a winning bid. If youre ready to own a home in Houston, then its time to get tough and swing for the fences!

I know its a little scary, but I can help. Ive successfully helped clients purchase homes in 2022 when theyd all but given up. With the right mindset and budget, it can be done! I can help you, too.

If youre ready to buy, contact Angel Fultz Realty today. Well discuss your options! I cant wait to help you find (and win!) your dream home.

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