This may happen to you. You find the perfect house for you and your growing family. It has everything you’ve ever dreamed of in a home and a perfect price so you decide to submit an offer. The only problem is, there are five other offers already on the house. So you have two choices: enter the fray in a bidding war or lose out on your dream home. Let’s take a look at what a bidding war entails as well as some strategies of winning one.
What is a Bidding War?
A bidding war is when two or more buyers are interested in the same house and each make an offer in hopes of winning the home. Buyers will increase the sale price in an effort to win the house. It is usually fast paced, meaning the buyers must make decisions quickly on how much they are willing to spend on the house. While it is a seller’s dream to have a bidding war, it can cause buyers to have remorse over the purchase price.
How to Win
The first thing to do is to get prepared. Make sure all of your financing is approved and you have your down payment in order. The higher the down payment, the better your chances are of getting picked. Make sure to base your offer off the most recent offer. Don’t try to lowball the seller and remember you may only have one chance to submit an offer. Make your offer a price you are willing and able to pay for this house. You don’t have to drop all of your contingencies but keep them reasonable. You can include a home inspection in the contingency but don’t tell the seller it has to be done within seven to 10 days. If you feel comfortable, there is an “escalator clause” that can be put in with your bid. It will automatically submit an offer up to $10,000 over the highest offer submitted on the house. It is a great way not to get outbid, but make sure you create a cap of what you are willing to spend and you can pay that amount.
Remember a little kindness goes a long way. Write the sellers a letter about you and your family as well as what you loved about the home. Tell them you appreciate the continual visits of potential buyers and be nice. Be willing to meet the seller’s timeline could also go a long way. Offer to lease the house back to them if they need to stay on in the house for a few weeks. Get to know their wants and needs to help them help you and you will win a bidding war almost every time! For more information or to get started on your buying journey, call Simply Referable today!
Simply Referable Can Help You Find Your Dream Home!
The small team of realtors at Simply Referable is deeply focused on creating a memorable selling experience for you and your family. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.