Tired of Competing with Multiple Offers to Buy a Home? Here’s How You Can Avoid It

There’s been a lot of talk about the current housing crisis on the news, and many buyers are hoping and waiting for something to change.

Even though mortgage rates have gone up, and home prices haven’t come down significantly in many areas, there is still fierce competition to buy a home. Houses still seem to be going under contract at lightning speed, with multiple offers and over-asking prices.

If you’re actively looking to buy, or are on the sidelines waiting for the tide to turn, you might be wondering when things will start to shift in your favor…

Well, it turns out it already might have — if you know what signs to look for.

Don’t Chase the New Listings — Look at Ones Other Buyers Ignore

Most buyers zero in on new listings the moment they hit the market. The problem is, so does every other buyer out there.

In any market, a well-priced listing will sell quickly. Whether it’s a hot sellers’ market or not, homes that are priced appropriately — taking into account factors like condition, size, location, and recent comparables — tend to find buyers within the first few days to two weeks of being listed.

This goes for homes that might be smaller than expected for a certain price range, but happen to be in pristine condition. Or a house that’s bigger or in a prime location, but needs a lot of TLC and updating. As long as the price aligns with the property’s unique attributes, buyers will bite.

On the other hand, homes that aren’t priced correctly linger on the market. Maybe the seller isn’t ready to adjust, or buyers aren’t even aware of the property because it’s listed above their search range. Or worse, buyers might think something’s wrong with the property and steer clear entirely.

These “stale” listings — homes that stay on the market longer than expected — often get overlooked and sit there unsold, and largely ignored. Well, at least until the seller finally decides to lower their price…

Once a seller lowers their price to a reasonable amount, buyers will often swarm and it will go under contract fairly quickly.

But during that period of time between initially listing too high, and finally deciding to lower it, the majority of buyers don’t want to “waste their time” trying to convince a stubborn owner to budge, or just presume there’s something wrong with the house and scratch it off their list of homes they’ll consider.

However, if you’re a savvy buyer, those are great listings to focus on if you’re looking to find more options in a market with limited inventory, avoid competition, and potentially negotiate a better deal!

And There Happens to Be a Lot More of Them Right Now…

Here’s where your opportunity lies. Many buyers are still under the impression that every house is selling quickly and for over asking price.

But according to recent data from Redfin, nearly half of all home listings in August sat unsold for at least 60 days, which is the highest percentage for any August since 2019. And nearly 70% of homes sat on the market for at least 30 days, up from 63.9% a year ago.

So there’s a good chance that there are homes in your area that aren’t flying off the market with multiple offers over asking price.

It’s a good time to capitalize on the tendency for other buyers to ignore these listings, before they catch on, and/or before the owners come to their senses and drop their prices!

Here are three things you can do to capitalize on these findings:

Focus on stale listings: Look for homes that have been on the market for 60+ days — or even homes that recently expired or were withdrawn. Many buyers will skip over these, making them a prime target for you.
Adjust your search criteria: Ask your agent to search for homes that might be priced above your range, but could potentially be negotiated down into your budget. (Avoid doing this on your own; getting your hopes up for a property that can’t be negotiated can distort your perspective on otherwise good options. So let your agent use their knowledge and judgment to choose just the right ones for you to consider.)
Be realistic: Not every seller will be willing to come down in price. Some are entrenched, stubborn, and confident in their listing, regardless of market conditions. Be prepared to move on and wait for the right opportunity.
Be patient: To make the most of these stale listings, it really does pay to have a savvy buyer’s agent who’s willing to do some digging, and has the skill to negotiate with even the most stubborn owner. This kind of knowledge and approach can help you open up options you may not have thought possible. However, even with the best agent on your side and a solid understanding of the market, some sellers simply won’t bend.

Negotiating takes time and patience—and sometimes the right strategy is to walk away and wait for the seller to be ready to rekindle the negotiations with you. Just make sure you indicate a willingness to continue the negotiations, so they are more likely to come back to you before just dropping their price and attracting other competing buyers.

Ultimately, this is a sign that the market is slowly shifting in favor of buyers — at least to some degree.

Just don’t sit on your hands waiting for a total market crash or bubble burst to bring prices crashing down. Take advantage of the opportunities that are there now. Because if mortgage rates dip even slightly, it could flood the market with more buyers and bring more competition.

The Takeaway:

The market may feel as challenging as ever, but there’s an opportunity hidden beneath the surface — “stale” listings. With nearly half of all homes sitting unsold for over 60 days, you may have a chance to find your dream home, and get it for a better price, without as many other buyers competing against you.

Have your agent focus on homes that have lingered on the market longer than expected. Be ready to negotiate, and be ready to walk away if necessary. Not every seller will be receptive, but for those who are, this strategy could mean the difference between finding a home that fits your budget and getting caught in bidding wars over fresh listings.