When It Comes to Bidding Wars, I’m Armed and Dangerous!
If you are participating in the real estate market right now as a buyer, it’s tough. Most likely, your Realtor has you set up with automatic emails so when a home is listed on the MLS, you are immediately notified. You notice a great property, so you call your Realtor to set up a showing appointment right away. You get to the home that same afternoon and already there are 10 other business cards scattered on the kitchen counter. You decide to have your Realtor put in an offer, but there are three other offers on the home. Here we go again. Another bidding war.
What if I told you we are having similar encounters with residential leases? It’s true! Last week I took clients to a home in Canton that was listed for lease at $1250.00/month. The lease was listed on the MLS the day before we scheduled our showing. We walked inside and the first thing we noticed were the 15 scattered business cards on the kitchen counter.
My clients LOVED the home! As we were discussing the lease application, we hear a knock at the front door. I open the door only to find a line of people outside waiting for their Realtors to arrive for their showing appointments. That’s when our discussion shifted from simply filling out an application to offering more money for the lease in case of other offers. We made the decision to go with a higher offer.
I prepared that offer and submitted all of the required information to the listing agent, including credit reports, paycheck stubs, employment letters, and a current landlord letter. I called the listing agent to verify our offer had been received, and because of the circumstances regarding the large number of showings on the property, I decided to ask if there were any other offers submitted. His reply: “As of today, we have received 12 other offers.”
Here we go again.
This is the reality we are facing right now as Realtors in our market. There are many people looking to buy and lease, but there is little inventory. So little, in fact, that people are trying to outbid each other—even for leases. These situations are driving property values up as well as leasing prices.
Check out this article written by CNN Money: http://ow.ly/wdFWF
If you are in the market for a residential lease, you are going to want to stand out. Of course it is great if you have a credit score of 620 or higher, but realistically not everyone has a score that high. For those who have lower scores, a current landlord letter can distract from a lower score. That letter needs to state the amount you currently pay, the amount of time you have leased their property, and that you consistently pay on time. Any referral letter from a friend or co-worker who is a landlord can help as well. I have gone as far as submitting lease offers with a nice family picture on the cover page to put a face with the application, and it has worked.
In this market, creativity is key. I hate having to say no to my clients, so I try my very best to think outside the box. “What can I do that someone else’s Realtor isn’t doing?” That is the question!
For more information on home sales or leases, or to list your home, contact me a today!