How to Win the House in a Bidding War
You have been searching the housing market in your area for months and have finally found the house of your dreams. You are so excited and write an offer as quickly as you can, only to find out that there are other offers made on the house. You have an opportunity to make your highest and best offer, what do you do?
These strategies can help you win the house:
Raise Your Offer
Sellers all want money. If you can afford to raise your bid, then do it. In multiple offer scenarios, it is not uncommon for the buyer to have to pay over asking price for the house.
There an option that allows you to automatically overbid another buyer up to a certain dollar amount. For example, you could say that you will pay $1,000 over the highest offer up to a certain dollar amount.
Appeal to the Emotional Side of the Seller
Along with your offer, present the seller with a letter. Let them know what you love about their house so much, why you want to live in the neighborhood, and other details of your story that could play on the emotions of the seller.
Try to connect with the seller.
Look for items in the house that show a hobby or an interest that they have, maybe they own a dog or have children and you do as well. You can let them know how much you would like to raise your family in that house where they can run and play in the fenced back yard. You want to make them want you to be the buyer that gets the house.
Get Your Financing in Order
Paying with cash will almost always triumph over a buyer that has to obtain financing. However, if you have to get a mortgage, then take the time to get pre-approved. This lets sellers know that not only are you serious, but that you can get approved for the loan as well. It will also help the process to move along at a faster pace once your offer has been accepted.
Skip the Inspection
Well maybe still have the home inspection, but let the seller know that you are willing to buy the house as-is. Make it clear that you will not be asking them to renegotiate after the results of the home inspection. This can be a big relief to a buyer that is unsure of what the inspection could turn up.
Put your real estate agent to work for you. It is their job to clearly communicate what you ask them throughout the process. Your agent can call the seller’s agent before you make your offer to find out what the seller is looking for.
They can also call again later to let the seller know that you are interested and serious about buying the house. If you happen to lose out on the house, make sure to let the seller’s agent know that you would like to be considered as a backup offer should the first one fall through.