When you’re in a hot real estate market and shopping for a home, you just may find yourself in a bidding war. And a bidding war can push the price up even higher. So, how to win a bidding war? The best way to win a bidding war is to hire an experienced, professional real estate agent who can guide you through the tough negotiations in a bidding war. These pros are a good backup. Plus, you’ll get good tips from them on how to win a bidding war.
Get Pre-Qualified vs Preapproval Letter
Having a preapproval letter is way better than just getting pre-qualified. You can up your chances of winning out other buyers. Although you’ll have to submit all of your financial documentation to your lender before looking at homes, you’ll be well-poised to pounce quickly when you find the home you want with a preapproval letter in hand.
Strengthen an Offer with an Escalation Clause
An escalation clause can strengthen your offer by stating that you’re willing to increase your offer incrementally if other offers come in that top your initial bid. An escalation clause gives you the upper edge when you’re facing a bidding way. You can also allow your bid to be valid for up to 20 days if the highest bidder makes an outrageous offer and does not deliver on it.
Scale Back on Contingencies
Sellers always have the upper edge in a bidding war, and they want offers that are clean and simple. Avoid putting in too many contingencies. You also don’t want to ask the seller to pay your closing costs. Contingencies and requests for closing costs fees will make the seller say no to your offer and say yes to another offer.
Write Up a Love Letter
A little love goes a long way in a bidding way. Write up a love letter to the seller and appeal to their heart. Tell them why you want the home. Even add a couple of photos of the kids or pets. With so much fierce competition in a bidding way, appealing to the heart can make your offer stand out.
Looking for a home in an active real estate market? Let the real estate professionals at On Point Carolinas Realty go to work for you and win you that home.