Tips for Winning a Bidding War
In some home-buying cases, a bidding war takes place, which occurs when more than one buyer makes an offer on a home, and several counteroffers ensue. So, if you’ve found the home of your dreams, here are some tips to help you win the bidding war.
Make a Great Offer When you outbid the competition, the seller will likely accept your offer, especially in a busy seller’s market. Also, if you decide to make an all-cash offer, you have a much higher chance of accepting your bid. Paying for a home in cash allows you and the seller to avoid additional fees like realtor commission and other closing costs. Get Pre-Approved Having a pre-approval document in your hand shows sellers that you’re already qualified to buy a home and that you’re serious about your offer. This is as close as you can get to securing a loan without a purchase contract. Add an Escalation Clause An escalation clause is a special language added to a purchase offer that will automatically increase your bid amount by a certain number as you compete against other bidders. The bid will increase until the offer reaches the maximum price that you’re willing to pay, and it only applies when there are competing offers on a property. Write a Personal Letter to the Seller Buying and selling a home is a very personal transaction. Consider writing a handwritten personal letter to your seller explaining why the property is so important to you and your family.
Getting involved in a bidding war does not mean you have to give up on your dream home. With some determination and knowledge, you’re able to move into the house you’ve always wanted. I am here to help you along the way with any questions or concerns!