Tips To Winning A Bidding War
You’ve found the perfect home - now it’s time to submit an offer and hope it gets picked. In a hot market bidding wars are not uncommon. So how can you prepare yourself so you come out on the winning side?
What Is A Bidding War?
A bidding war in real estate is when a seller receives several offers on a property in a short period of time and has the leverage to wait and see if any of the potential buyers can raise their offers. This is a nice spot to be in as a seller but a tricky place to be in as a buyer.
You should avoid a bidding war if the other offers are substantially over asking prices or in all cash or you can’t afford to raise your initial offer very much.
Tips To Help You Win
Get Pre-Approved
It always helps to get pre-approved for a mortgage before submitting an offer. This signals to the seller that you are in good financial shape and can close on the offer swiftly.
Increase Your Offer
The quickest way out of a bidding war is to increase your offer so you stand out. You can increase it a little and wait and see if you get any traction or increase it by a lot. Always discuss the best strategy with your real estate agent to make the most sensible move.
Write A Personal Letter
Sometimes when a seller receives a bunch of offers that look the same a personal letter will make a big difference. Consider writing a personal letter to the seller about how you can see your family living in the home into the future. This may just tip the scales in your favor.
Closing Date Flexibility
If you can be flexible on certain dates that will win you some real goodwill with the seller. Be flexible with the closing date if you don’t have to move in a pinch. This will be attractive to the seller because they will have more time to make some fixes and get their life in order.
Increase Your Down Payment
If you can, consider increasing the amount you are willing to put down on the home. This will show the seller that you are serious about purchasing the home.
Finding your next home can be stressful - but it doesn't have to be.
When it comes to real estate, you can Depend on Dakota.
Visit dependondakota.com or call 781-264-6410
