Bidding Wars: Never Lose Out on the Property You Want
If you are buying a home, beware! Homes for sale are at a historic low, while the need for homes has risen sharply. Multiple offers typically appear on the homes for sale, causing confusion for sellers and buyers alike. This creates the perfect environment for bidding wars. Before you compete in a bidding war, take a look at the following suggestions that can help you win the battle.
Make Your Best Offer First
View the house the first day it goes on the market, and make your offer the very same day. If you can, be the first to make an offer. Remember, you may be bidding against an investor who brings cash to the table, which sellers love because cash doesn’t back out of a potential deal due to lack of financing. For this reason, try to make your best offer first, and make it one that grabs the attention of the seller sitting at a table with eight offers to review.
Grab the Seller’s Attention
Make it easy on sellers when possible. Find out what motivates them by having your agent contact the selling agent. By offering sellers something they want, your offer may become more attractive and move you to the top of the pile. Perhaps they need to downsize and want to leave furniture at the home. Or it could be they need to stay in the house three weeks after the sale. By offering something sellers need or want, your chance of winning the bidding wars can rise significantly. Additionally, if financially feasible, offer to cover sellers’ costs. An example would be staging or moving costs. Sellers appreciate the extra details in your offer.
Be Prepared With Paperwork
Be mortgage prepared and get pre-approved. Check your credit reports and pay off any debts you can to improve your credit score. Verify your income and mortgage payments you can afford with the bank, and obtain a mortgage pre-approval letter. This can show the seller you are a serious contender.
Send a Love letter
A rather recent addition to the bidding war, the love letter has become a powerful tool in swaying sellers to a specific type of buyer. Tell the sellers why you want the home and what you appreciate about it. Be specific and honest about your reasons for choosing their home. Your honesty will come through in the letter and may help you win the war.
Choose Your Battle
The more prepared you are, the better your chance is of winning the bidding wars on a property you want. In the end, only you can help yourself win the war.