How to WIN Bidding Wars While the Market is Hot!

 

How to Win Bidding Wars While the Real Estate Market is HOT!

Are you wondering how to navigate a bidding war during such a competitive time? The truth is, it’s not easy without a plan. The real estate market is on a hot streak, and houses are flying off the market faster than ever before.

Putting an offer on a home can be both exciting and nerve-racking! When you meet the seller’s asking price, you’ve completed the deal, right?

Wrong.

Unfortunately, another potential buyer may have made a similar or better offer than yours. Instead of giving up, you should make a more desirable offer to the seller. This is the official start of a bidding war. With some preparation, you’ll be ready to win! In this post, we’ll go over top strategies to help you handle cutthroat bidding wars like a pro.
 

Make an offer that stands out.
Handling a market this hot can be extremely stressful and takes patience. With listings receiving multiple offers, it’s important to distinguish your offer from the others. A smart thing to do right out of the gate is to write your highest and best offer. If you are comfortable paying a certain amount over the listing price, do it. This is an easy and effective way for your offer to stand out.

 

Keep in mind, your offer will capture more attention if you include odd numbers. For example, offer $549,999, instead of $550,000.

 

Another way to make an offer that stands out is by upping your earnest money. The deposit you put down on the home shows the buyer that you’re serious. If the seller has two competing offers to choose from, he or she may feel more secure going with the larger deposit.

 

Kill the conditions.
This might be only asking for health and safety items from the inspection.

Give the seller time.
The date of buyer possession is often the most important part of the offer. The seller may be overwhelmed. To be fair, they do need to coordinate the selling, buying another home, and moving in a short amount of time. Offer the seller two to three days to move out after closing. Be as flexible as possible.

 

Use the assistance of a real estate agent.
You can complete the purchase of a new home without the help of a Realtor. But, keep in mind, it will be a bit more difficult. Forgoing a partnership with a realtor can save you a significant amount of money. It can also save you a significant number of headaches.

 

Be prepared.
Ask your Realtor to prepare multiple contracts with different purchase offers. Your realtor can submit these whenever needed to stay on top of the bidding war.

 

Another way to prepare is to get pre-approved. Sellers worry that buyers won’t be able to get financing. Mortgage pre-approval shows sellers that a bank has taken the first step and will give you the mortgage. This will build trust and comfort between buyer and seller.

 

Know how to deal with counteroffers.

Even the best offers may be countered by the seller. This means the seller would like to accept your offer but is requesting specific changes.

For example, you may offer to purchase the home for $500,000 with a 20% down payment; stating that the seller must pay for the repair of water damage prior to the closing of escrow. The seller may counter and say they will accept $500,000 with a 20% down payment, but will not repair the water damage.

At this point you have three options: accept the counteroffer, counter to the counteroffer, or back out. Be clear of your needs and boundaries prior to making the deal. Read the contract carefully.

 

It’s easy to get swept up in the emotion and excitement of bidding on a new home. It’s important to remember that there are other options. Always know the maximum amount of what your budget can afford and stick to it. Don’t make the mistake of digging yourself into a hole and paying too much for the sake of winning. Talk to a mortgage broker or a Realtor if you’re not sure how much you can afford.

 

Need more information?

Want to know more about the Secrets of Success in the Real Estate market? Debbie Taylor wants to help. Contact Debbie Taylor, Realtor, CRS, CLHMS, CPRES at 303-589-6692, or [email protected]. RE/MAX Alliance Central