Bidding Wars Are Quietly Returning - But Buyers Are Taking Bigger Risks To Win
For the past year, the housing market has slowly been shifting toward buyers.
Inventory has increased.
Homes are sitting longer.
And buyers have finally regained some negotiating power.
But something interesting is beginning to happen in certain parts of the market - bidding wars are quietly starting to return.
And in some cases, buyers are becoming so competitive that they’re putting themselves in risky financial positions just to secure a home.
A recent Realtor.com report highlighted a growing trend across the country where buyers are offering well above asking price and waiving appraisal protections in order to compete in multiple-offer situations.
Honestly, we’re beginning to see pieces of that behavior again here in the Charlotte region as well.
The Market Is No Longer “One Size Fits All”
One of the biggest misconceptions right now is that the entire housing market is either “hot” or “slow.”
In reality, today’s market is extremely split.
Some homes are sitting for weeks with little activity.
Others are receiving strong traffic, multiple offers, and aggressive buyer behavior almost immediately.
Typically, the homes seeing the strongest competition right now are:
move-in ready,
updated,
properly priced,
and located in highly desirable areas.
Meanwhile, homes that are overpriced or need significant work are taking much longer to move.
That split is becoming very noticeable across Charlotte, Concord, Harrisburg, Kannapolis, and surrounding areas.
What Is an Appraisal Gap?
One of the biggest risks buyers are taking right now involves appraisals.
When a buyer finances a home purchase, the lender orders an appraisal to determine the home’s value based on recent comparable sales.
The challenge is that bidding wars happen in real time - but appraisals are based on past sales.
So if buyers push a home’s price far above recent comparable sales, the property may not appraise at the agreed contract price.
That difference is called the appraisal gap.
For example:
Contract price: $500,000
Appraised value: $480,000
Appraisal gap: $20,000
In many situations, the buyer then has to either:
bring additional cash to closing,
renegotiate with the seller,
or risk losing the deal entirely.
Why Buyers Are Waiving Appraisal Protections Again
During the pandemic market, buyers became accustomed to waiving contingencies in order to compete.
Now, even in a more balanced market overall, we’re beginning to see some buyers return to those aggressive tactics for homes that stand out from the competition.
According to Realtor.com, many buyers are waiving appraisal contingencies entirely just to strengthen their offers.
That strategy can absolutely help buyers win in competitive situations.
But it also creates significant risk if the appraisal comes in low and the buyer doesn’t have enough cash reserves to cover the difference.
In some cases, deals are falling apart completely because buyers stretched too aggressively trying to “win” the home.
The Charlotte Market Is Becoming Hyper-Local
One thing I’m seeing more than ever lately is how neighborhood-specific the market has become.
Certain homes still create urgency and competition immediately.
Others require price reductions and extended market time.
That’s why pricing strategy matters more now than it has in years.
The homes performing best right now are usually:
entering the market priced realistically,
showing extremely well online,
and positioned correctly from the beginning.
Recent Realtor.com research also shows that buyers are responding strongest to homes priced appropriately upfront rather than listings that start too high and reduce later.
Buyers Need To Stay Emotionally Grounded
Buying a home is emotional.
And when competition enters the picture, it’s easy for buyers to get caught up in the excitement of “winning.”
But the reality is:
Winning the contract is only the beginning.
You still have:
inspections,
insurance,
appraisals,
closing costs,
and long-term affordability afterward.
In today’s market, buyers need to balance competitiveness with financial discipline.
Final Thoughts
The housing market today is far different from the frenzy of 2021 and 2022 - but competition absolutely still exists for the right homes.
What we’re seeing now is a much more selective market.
Well-prepared, properly priced homes are still generating strong buyer demand.
Overpriced homes are struggling.
And buyers are increasingly willing to take bigger risks for homes they truly love.
As we move further into summer, I think we’ll continue seeing this split-market dynamic play out across the Charlotte area and surrounding markets.
