We are experiencing a real estate market that no one has seen before. An extreme shortage of inventory and an abundance of home buyers makes it vital that you have a plan when making an offer
How to Win a Bidding War
We are experiencing a real estate market that no one has seen before. An extreme shortage of inventory and an abundance of home buyers makes it vital that you have a plan when making an offer on your dream home. Bidding wars are commonplace in today's market.
First set your maximum price from the start. Pre-qualification is essential, get a referral from your realtor, friends, and family. Interest rates are on the rise; payments will change accordingly. Also take into consideration property taxes, homeowners insurance, HOA Association or Condo fees. When the bidding gets, high Buyers need to know when to walk away.
Know how much CASH you are willing to put on the line? Sellers will take cash offers over financing offers, no appraisals, and inspections. Conventional loan programs over FHA Loans or any minimum down loan program.
Wave your Contingency. Buyers who are willing to wave the Due Diligence period or Financing and Appraisal contingency will stand possible up their chances of winning the bid by 58%, with a fully preapproved loan.
Another strategy would be to write a letter to the Sellers. Adding a family picture may help the Sellers. Keep the message reasonably short; long letter tends to overwhelm the Sellers.
Keep Deadline Dates Short, Longer Possession times, Non-Refundable Earnest Money after the Due Diligence will show the Sellers that you are a serious Buyer.
In the long run, it's a Sellers Market, long drawn out negotiations are a thing of the past. Make your best offer from the start; you will more than likely be in a multiple offer situation.
Best of luck
Source, "House Hunting? Here's How to Win a Bidding War" CNBC ( April 10, 2018)
My enthusiastic and aggressive approach to today's intensely competitive real estate market has helped many families realize their dreams of owning a home. Buyers can expect 100% commitment to finding....