When you’re involved in the home-buying process, it can feel discouraging to find a property you love and then end up in a bidding war. In a strong market with low interest rates, a bidding war can drive up the price of a property and make obtaining your dream home feel nearly impossible.
It’s essential to have a skilled and experienced realtor to be your advocate, without question, but there are a few other things you can do to help your bid come out on top.
Working out the financials with your lender before making an offer will make you much more prepared for a bidding war. If you have documentation from your lender, the sellers will know your offer is financially legitimate.
Add an Escalation Clause
This is a great way to let the sellers know that you are willing to gradually increase your offer if other buyers issue higher offers than yours. You can stipulate to exactly what price you will raise your offer, as well as how much more you would like to raise it by each time another offer is received. This could really help your chances in a bidding war by keeping your offer competitive.
Be careful not to ask too much of the sellers. When negotiating at the same time as other buyers, the simpler the better. Sellers generally don’t like working with complicated obligations.
Don’t Have a Strict Closing Date
Not holding the seller to a strict closing date can give your offer a distinct advantage. Some love more time to pack up their things, while others might be more anxious to leave.
Send a Letter
Real estate offers can often feel impersonal, while homes are quite personal. Writing a letter can tell sellers why buying the house is meaningful to you. This can help you stand out in not just the mind, but the heart of the seller.
Don’t Give Up
Even after losing a bidding war, don’t give up hope! A deal can break down at any time. Keeping your interest in the home can make you the buyer who the seller turns to if the winner of the bidding war falls through.