You could find yourself in a situation where you want to place an offer for your perfect home and the seller has received multiple offers. This may be discouraging since it takes a longer period of time before closing, and chances are that your offer may be rejected. Although it may seem like the best way to win a bidding war is offering the highest amount, sellers don’t always pick the highest bidder. Here are some great tips to help you win a real estate home bidding war;
In terms of finances, a strong pre-approval goes a long way. If you’re seeking a loan to place an offer with, keep in mind that you might be competing with cash buyers. A real estate home seller is most likely looking for the most qualified buyer with the least processes in terms of cash, this means having the pre-approval letter and any other thing needed in hand ready. If you’re a cash buyer, have your finances in check before getting into a bidding war.
Negotiate the seller’s terms. Find out from the listing agent what the seller wants and how you can incorporate that into the contract to make your package attractive. If the seller is still looking for a home and you can find them options meeting their needs, they will more likely close on your offer and give you the home. If the seller requires a one month timeline to find a home, draft an offer with your agent on a post-settlement rent back. You can also offer to settle the deposit or full amount as per seller’s schedule to attract them to close the bidding war and pick you as the new real estate homeowner.
Waiving a home inspection may not be the brightest idea but it will bring your offer close to being accepted. You can bring your home inspector with you when viewing the home to get a general feel of the home, then place an offer confidently. Some sellers include a home inspection report in their documents and if not there, you can always have an inspector check the condition of the house once your offer has been accepted.
If push comes to shove, you can work with your real estate agent to find out the escalation clause and see how much more you can offer over and above the buying price. This can easily lock the seller into accepting your offer, but as a buyer be careful not to overpay for the value of the home.