It’s no surprise that NYC real estate is one of the most competitive markets in the world, particularly for homebuyers. It happens all the time – you think you’ve found your dream home only to be informed that you’re in competition with other buyers. This may seem daunting, but not to worry.
Here are five effective strategies that will give you advantages on how to win bidding wars in NYC:
By the time you’re making an offer, you probably have a good idea of your budget. However, when encountering a bidding war NYC buyers can sometimes easily get carried away by their desire to win and lose sight of the bigger picture. Draw a line in the sand with your budget so that you don’t overextend yourself financially. There are plenty of homes in NYC. There will be other opportunities.
Make sure your buyer's agent runs comps to justify the approximate value of the condo or co-op you are hoping to buy and evaluate that relative to the asking price for the apartment. It is important that you make an informed decision. As with any investment, you want to have a clear, well-research strategy to ensure you don’t let your emotions get the better of you during a negotiation.
Price and value are not the only points to consider when preparing your offer. Non-financial terms are a great way to make your offer stand out without having to dig deeper in to your pocket. A few examples of non-financial terms include timing of possession, flexibility on target closing date, and the option for a short-term lease-back. For sellers that want to sell their apartment but haven’t lined up their relocation, offering a short-term lease back can remove a lot of stress during the home sale process. In some cases, you will find that sellers prioritize flexibility with timing over a higher price.
Whether you have strong ties to a community, are a first-time buyer, or are experiencing a life event, telling your story can help create a personal connection with the seller. Writing a heartfelt personal offer letter about yourself and what buying that property means to you can position you favorably in a bidding war.
Receiving a commission rebate can provide additional buying power relative to your competition. At Prevu, we are a technology-driven, full-service brokerage in NYC, passes a significant rebate along to our customers. With Prevu’s Smart Buyer™ Rebate, you receive a commission rebate of two-thirds of the commission Prevu receives for representing you as a buyer's broker. For example, if you buy a $2 million condo or co-op with a 6% commission (3% paid to seller’s broker and 3% to the buyer’s broker), your buyer commission rebate totals 2% of the purchase price. That’s a savings of $40,000 that you can use to help offset your closing costs or increase your buying power.
As always, the Prevu Team is here to help if you have any questions. You can reach us at firstname.lastname@example.org or (646) 603-6868.
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January 22, 2019