Bidders are making offers on multiple homes simultaneously to increase their odds of getting accepted.
According to survey of nearly 800 Redfin agents taken last month, more than half of respondents said that competition from other bidders is buyers’ biggest challenge when buying a home, supplanting low inventory.
Bidders are placing multiple offers on different homes simultaneously in an effort to increase their odds of getting accepted. Some buyers will then renege on an offer in favor of a house they like better, which means sellers then lose out on other legit offers as well. Agents say that the strategy should be avoided because it is an emotional response to losing out on other homes.
“I recommend that clients in this situation take a step back and consider what’s most important to them in their next home and how far they’re willing to go to get it,” said Redfin real estate agent James Gulden in the article. “That way, they can be in the right mindset to make an offer they feel good about on a home they truly love when it hits the market.”