Bidding War Battles: How To Come Out Victorious

So, what do you do if you have your heart set on a home that other people want too?

• Show them the cash – According to a report by Redfin, cash offers were 4 times more likely to win a bidding war. Of course, when considering making a cash offer don’t drain your emergency fund, and weigh factors such as if there is a penalty to pay if you withdraw from a certain account.

• Get pre-approved – Next to cash, getting preapproved before you shop is the next best option. This way you know what you can afford, and it ups your chances of winning a bidding war because the seller knows you are serious and can close faster.

• Offer over asking – In doing so, make sure you know the highest amount you are willing to offer, thinking in terms of what the monthly payment would be.

• Limit contingencies – Contingencies waived usually apply to inspections, appraisals, finances, and insurance. Be aware that waiving contingencies limits your ability to back out of the deal and you take a potentially serious financial risk.

• Pull at their heartstrings – Hand-deliver a personalized letter with a gift introducing yourself and your intentions for the home, with a picture, perhaps of your family. The goal is to strike an emotional chord with the seller where they see themselves in you.

Navigating a bidding war can be tricky, so you need to be prepared for one before it happens. As an experienced REALTOR®, that’s where I can help.