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

To buy a home in Houston these days, you’re going to have to go above and beyond. Paying list price often isn’t an option—with as many as 20 bids or more for almost every house that hits the market, you’re 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 you’ll 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, it’s important to realize that if you’re 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 who’s in a rush. 

3. Waive contingencies altogether

It sounds crazy, but In today’s 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. It’s drastic, but right now it can mean the difference between winning and losing a real estate bidding war in Houston.

4. Offer to pay seller’s 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 what’s known as closing costs, which can include title insurance, taxas, fees, and other charges. By offering to pay a seller’s 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, that’s out the window. Sellers want as much money as they can get for their property, and they don’t care if it’s in cash, credit, or crypto! Don’t assume a low cash offer will win a bidding war simply because it’s cash—it won’t! 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 you’ve just started looking to buy a home in Houston, these tips may shock you. That’s 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 you’re ready to own a home in Houston, then it’s time to get tough and swing for the fences!

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

If you’re ready to buy, contact Angel Fultz Realty today. We’ll discuss your options! I can’t wait to help you find (and win!) your dream home.