3 Tips That Could Help You Win A Bidding War
by Brooks Reynolds on May 10, 2022
3 Tips That Could Help You Win A Bidding War
Bidding wars have become familiar with a limited inventory of homes for sale and many buyers looking to purchase before mortgage rates rise further. According to the National Association of Realtors (NAR), an average of 4.8 offers are being made per sale on homes nationwide.
In a competitive market like this one, it’s essential to know the insider strategies you can use to help win the deal.
1. Offering Over Asking Price
The first thought you may have when sweetening the deal for sellers is to offer more money. In today’s housing market, homes are selling for over the asking price because there are more buyers than there are homes for sale. Of course, you want to make sure that your offer is still within your budget and realistic for the market value in the area that you are looking – that’s where a local real estate professional can help you through the process.
Pro tip: Consult with your realtor to make sure the value is still there.
2. Submit A Pre-Approval Letter With Your Bid
Pre-approval letters help buyers show they’re serious bidders. Pre-qualification letters state how much a lender may approve you for on a mortgage. But pre-approval letters go one step further – they are only provided after a mortgage company has verified information such as your income and assets. Having a pre-approval letter in hand can give sellers more confidence in taking your offer over someone else’s whose financing may fall through.
Pro tip: consider getting pre-approved for a bigger loan than you need, if you haven’t already. Having extra cash on hand often helps sweeten the deal for sellers.
3. Be Negotiable With Contingencies
Contingencies are clauses buyers often add to contracts to protect themselves, but these can be hurdles for sellers. Examples include stipulations that repairs must be made or that a home has to close on a particular day. If you’re flexible with these during a bidding war not he house, it’s likely you will stand out from the crowd.
Pro tip: Bring a home inspector to the showing so that you can drop a home inspection contingency. These are called “walk-and-talk inspections” because the inspectors can provide verbal feedback about what they spot during the walkthrough.
Bottom Line
In today’s hot housing market, a local real estate professional will have the best insights and can be your ultimate guide in presenting a solid offer. Give us a call today: 518-418-7747
