Home buying can seem like a game of when it comes to bidding wars. These battles regarding your dream home can even occur during a buyer’s market. Sometimes it’s hard for a buyer to learn that a few offers have been put down on the home they want. But you should plan out how to get it and learn what the seller wants and how your offer can get picked over others. Here are some tips to win a bidding war.
1. Don’t begin the war
Do you know the greatest way to win a bidding war? You should not have one in to begin with. Ask your realtor to look at what the sellers want in terms of pricing and convince them to not pay attention to the other offers. The seller may want to boldly make a counteroffer on the pricing.
2. Get a letter that states that you’re pre-approved
You cannot always stop a war from occurring. You may need to participate in the battle. When you get pre-approved, this is a great way to get ahead. You should misunderstand this for being pre-qualified. This will mean that a loan officer has evaluated your credit and decided that you are able to get a loan for a certain number. This is only an overview. When you are pre-approved, this will show that you that an underwriter has looked over your finances and will push you ahead of the others.
3. Offer all cash if you can
In the real estate industry, it is known that all cash offers have more significance in terms of a buyer battle. You don’t have the cash to buy the entire home, you should put a lot down instead. Your home sellers will be attracted by the high deposit to escrow. These deposits are typically ten percent, but a buyer could put more down. This strategy will lower the risk to the seller and increase the risk for the buyer because they’re putting more down. You can also offer more than the asking price to appeal to the seller.
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4. Condense contingency timelines
When you are going through a contingency, the buyer can cancel the transaction at any time. Your sellers want to close the deal as quickly as possible, so one thing you can do is lower the contingency timelines. You should make your inspection contingency five days or less. The lower the contingency amount, the easier it is for the sellers. Most home sellers don’t want to list their home for the second time due to a contingency. A smooth offer is attractive to sellers.
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