6 Ways to Win a Bidding War
It can definitely be discouraging to hear there are other offers on the property that you want to buy. Sometimes this can even happen if a home has been on the market for a little while when just at the same time two or more parties decide to submit an offer. In the interest in coming out on top, here are 6 strategies to assist you with your winning quest.
Avoid the war
Sometimes it can be as simple as asking. Find out what the seller is looking for. Perhaps it is a particular time frame for closing or maybe they will let you know if they have a price in mind that would persuade them to call off the bidding war. You don’t know if you don’t ask.
Get your pre-approval letter ready
If you must play the game, make sure you are well armed. A pre-approval letter is a must so that the sellers know you are financially secure enough to buy their home. Make sure you have this ready and include it with your offer.
Not everyone has the luxury of paying cash for a home. However, in a bidding war you may want to consider your options for strengthening the deal. You could offer more for the escrow deposit, more for the down payment or finally more for the purchase price. These options either show the seller more security or of course, more money if a higher price is paid.
During a contingency period a buyer can back out of the deal for a variety of reasons. However, you could reduce your timeline and omit some contingencies to appeal to sellers. For example, removing a home inspection contingency is something buyers do in these types of situations.
As much as you prepare, you will also want to have an experienced agent such as myself to represent you. With my numerous years of experience and expertise, I am well prepared and well versed in all types of situations to assist you.
Some opinions differ on whether this can help or not. However, you really don’t know what will strike a chord with the sellers so it can’t hurt to submit a personal letter with your offer. Drafting a brief, but sincere note on what you love about the house and how you and your family would enjoy it may just appeal to the sellers in a way that a plain offer may not.