Is there a lack of homes for sale in your area? Have you submitted offers on a home and been out bid? Then come to find out that the home sold for less than you had offered on it and wonder how this happened? There are several strategies that may help turn the odds of winning a bidding war in your favor. We will go over 3 of them today.
Bidding War – 3 Ways to Compete
Help the seller out
Do whatever you can, within reason, to make the decision easier for the seller. This can include being flexible on the closing date to accommodate the seller’s moving plans. And although it’s not unusual for buyers to ask a seller to pay for a portion of their closing costs, now may not be the time to press your luck. If you’re able to cover your own closing costs and you don’t ask for seller assistance in your offer, you definitely could stand out. Also, the greater your down payment, the more secure a seller may feel that your mortgage financing will close with no problems. That’s not to say you can’t compete in a bidding war against someone who is offering a larger down payment; sellers will weigh various factors as they review offers with their agent. Overall, limiting your requests of the sellers and submitting your highest and best offer are the best approaches to being competitive.
Be prepared to act fast
Together we should be constantly monitoring homes for sale so you can evaluate potential homes as quickly as they’re posted. Research the properties as much as possible before your showings so you can be prepared to make an offer on the spot if the home is a good fit. We can add an escalation clause into your offer that automatically increases your bid if other buyers come in. Finally, include a pre-approval letter from your lender stating that you qualify for a loan in the amount of your offer.
Don’t be shy
There isn’t always a lot of cash separating the top bid from the next closest contenders. For a seller with a strong emotional attachment to their home, an extra thousand dollars might mean less than passing their house along to the right buyer. You can draft a letter describing why you fell in love with their house. Is it the perfect size for your growing family? Do you want to bring the backyard garden back to life? It just might give you the edge over the competition and be the deciding factor to be the one whose offer is accepted in a bidding war situation.
If you’re looking for advice tailored to your specific situation, you want a qualified agent who is able to assist you in a competitive market. Contact Nick & Cindy Davis today! You can always call us at 813-300-7116 or simply click here and we will be in touch and get started working for you.