If you’ve been in the market to buy a house lately, you know how competitive it is out there! It can be very dismaying when you lose several times–but what a wonderful feeling it is when you WIN the bidding war! Read on to learn what you can do to make your offer look as attractive as possible.
It used to be that homes $250,000 and under would have bidding wars, that was to be expected with the lack of affordable homes. But now I’m seeing bidding wars in pretty much all prices since inventory is low across the board. If a home is in good condition and updated, it will get multiple offers. I’ve seen this in my updated listing listed at $565,000 and even my extreme fixer upper listed at $850,000 too.
So, how do you win a bidding war? Put your best offer in. Don’t think you’ll have any opportunity for negotiation. If you are willing and able to offer more, offer more. Don’t hold back. I’m seeing many listings go under contract at least $10,000 over asking price. Of course, that depends on how reasonably it’s priced and if it would appraise at much higher. You’ll have to get guidance from your Realtor. If financed, the property will have to appraise for that sale price. If paying cash, that appraisal can be waived–which may make your offer most attractive.
From the seller’s perspective, he/she will go over all offers with their Realtor. They’ll compare many things: sale price, amount of good faith deposit, the strength of the pre approval letter if financed, the proof of funds for cash offers, closing date, whether or not a home warranty is being requested, number of days for inspection, contingencies and concessions.
The winner will most likely be the highest price offer with no contingencies (like the sale of another property), no concessions (like closing cost credits), a short inspection period (like a week), a high good faith deposit (wow them), closing as soon as possible (or whenever the seller would like), pay for the home warranty yourself, and bullet proof evidence of funds or financing.
If you need a Realtor to go to battle with you, I’m ready to take on any bidding war! Call me and let’s go home shopping: 407-236-6559.