News

Check out market updates

Winning the Bidding War

Putting an offer in on a property can be an exhilarating experience, especially when you are willing to pay the asking price, or exactly what the seller wants. Once you have reached this step you are probably already starting to fall in love with the house. After all, you’ve met the seller’s asking price, why wouldn’t the property be yours?

Another potential buyer may have made an equal or similar offer. You now have found yourself on the frontlines of a bidding war.

Use these strategies, from moneyunder30.com, to make the most appealing offer, and ultimately, come out on top!

Kill the Conditions. First step towards making the winning offer, remove conditions from your offer.

Say Hello. Meet the homeowners. Your offer may be more likely to be accepted if the homeowners can picture you living in their house, or think that you might be a good fit in the neighborhood.

Give the Seller Time. The date of buyer possession is a very important part of the offer. The seller may be in the middle of coordinating selling, buying another home, and moving out in a short amount of time. Give the sellers a couple of extra weeks to move out after closing, without compensation.

Up your Earnest Money. Earnest money is the money you put down on the home if your offer is accepted. It may be difficult to come up with a few extra thousand dollars, but the homeowner may feel more secure going with the offer that includes a larger deposit.

Get Pre-Approved. Some sellers will be more likely to accept a lower cash offer than an offer that requires financing. If a cash offer isn’t an option, you can increase your chances by getting a pre-approved mortgage. It shows sellers that you are serious about buying, and that you are able to finance the house.

Be Prepared. Once you know you are in a bidding war, work with your realtor to draw up a number of different contracts. It will save time when the sellers are working with you on different offers. Remember to draw attention to your offer by offering odd numbers, such as $249,999 rather than $250,000.

Always, always, always know your maximum number that you can afford and are comfortable paying. Talk to a realtor or mortgage broker if you’re not sure how much you can afford.

Leave a Reply

Your email address will not be published. Required fields are marked *