In April of 2020, housing prices actually increased slightly compared to April of 2019. At that point, it wasn’t quite clear how coronavirus would impact the housing market. Now, we see those housing prices going up and up. Is it that homes are becoming more valuable? In a sense, depending on who you ask, yes. But one big factor driving those housing prices is the increase in bidding wars happening.
The current low rates may have something to do with it, as so many buyers are rushing to take advantage of low interest rates before they go up. But, it’s all a balancing game. When interest rates are low, everyone wants to buy, so competition is high, and prices can increase. If you do want to buy right now, you may find yourself in a bidding war. You may be competing with someone who is able to offer just as much as you are, if not more. One thing that can make your bid the winning bid is a good offer letter. They are more powerful than you may think. We spoke with Leneiva Head of Welcome Home Realty in Nashville, Tennessee about how to write a great offer letter.
Give your realtor some freedom
“The buyer’s agreement says the buyer’s information is confidential forever. So the realtor can’t tell the buyer’s business without their permission,” says Head. That being said, it could prove beneficial to give your realtor permission to share something personal about you, in an offer letter, to appeal to the emotions of the seller.