If you have been following this series, I have been walking buyers through the process of buying a home, because the best way to buy a home is through preparation and research. But probably the one topic that will be the most widely read is how to create a winning bid. With Puget Sound being the hot real estate market that it is, homes for sale that are priced right will have multiple offers before they are sold. We are seeing more and more of this in Kitsap County — especially in places with convenient access to the ferries and on Bainbridge Island.

How do you make sure that your offer stands out from the pack? The best way to win in the bidding war, due to the increased housing demand and shortage of supply, is to be prepared.

When home shopping, instant information is power. You need to be accessible to the latest homes on the market, so signing up for an e-mail notification of homes as they first come available, lets you have notice that a home meeting your criteria has just entered the market. New on the market homes are often the most sought after, so this will give you an edge. Give your agent a cell phone number allowing instant contact for each person in your party and be ready to move quickly. If an agent finds a home that meets your criteria, being the first to bid is the one of the better ways to beat out the competition.

The most important advice for getting the winning bid is to remove any contingencies that might hold up a house closing. With the hot real estate market being what it is, home sellers are currently able to entertain multiple offers, most of which have waived contingencies. Some of those contingencies that sellers are currently not having to deal with due to the competitive market are: house sale contingency (buyers who need to sell in order to buy are now getting bridge loan approval in advance,); seller disclosure is being reviewed and waived by purchasers prior to writing a contract; purchasers are most definitely going through the loan process and being pre-approved prior to writing a contact. Some buyers are having a pre-inspection with a home inspector in tow, prior to making a contract, thereby not including an inspection contingency.

In multiple offer situations, the sales price usually is over the asking price. Another tactic to win the bidding war is using an escalator clause in the bid. An aggressive escalator clause is one that increases your bid over a set amount of the highest bid with a not to exceed limit. Other parts of the country with hotter real estate markets are seeing other ways to entice a seller to accept ones bid. Bidders have been known to offer stocks, trips or even home-baked items to make their particular bid seem more appealing than the others. Luckily the Puget Sound real estate market is currently a little more sane.

Under “normal market” circumstances, ownership changes (closing) happen in 30-35 days. We have seen some transactions close in 10-14 days, allowing the seller to remain an additional 10+ days following closing. This quick closing is to create a winning bid. Offering cash often speeds up the closing, thus making the bid more appealing. An agent can advise you as to the particular business practices in real estate, and what is being expected in this market.

Each real estate market throughout the United States has its idiosyncrasies, and our area is no exception. Call on your real estate agent’s knowledge and experience as your tool to win in this marketplace. You will need your agent more than ever as you try to buy a house in a new and booming real estate market.

Good luck in your house hunting, enjoy the process and the end result. Shopping for homes in this area is challenging, but well worth any effort you put into it.

(Editor’s Note: J. Lennox Scott, is president of John L. Scott Real Estate. He may be reached at realnews@johnlscott.com, or visit his firm’s award-winning website at www.johnlscott.com.).