[Courtesy of Redfin]
The housing market in and around Washington, D.C. has been heating up. This past September, 46.2 percent of all Redfin offers were competitive, up from 33.9 percent in August. Surprisingly, the competitiveness this year hasn't been as prominent as in 2013. In comparison to other cities, though, bidding wars in Washington are pretty relaxed. In San Jose, San Francisco and Los Angeles, competition ranges from the low 70th percentile to the upper 80th percentile.
Redfin DC Agent Steve Centrella said that one of the ways that competition builds is by sellers listing with intentionally low prices in order to drive up the price with a bidding war. Other ways include offering shorter settlement terms, waiving contingencies, and writing a personal letter to the sellers. The more a seller stands out, the more likely there will be competition.
"More than anything else, being prepared with your best offer and knowing your personal price ceiling will make sure that you not only have a better chance of landing the property, but don't have any regrets," says Centrella.