4 Ways to Compete in a Bidding War
When you fall in love with a great property, you don't want to think about someone else buying it from you. All too often, though, another buyer will swoop in with a potentially better offer. In some cases there may be several buyers who are all competing for the same house. A bidding war can get started, driving up the price. If you find yourself in a bidding war, you want to compete the right way, so you have the best opportunity to win the house if your dreams. Since the seller has the upper hand, making yourself look like the best buyer is the key. Here are four ways to do that.
1) Make it an Easy Decision for the Seller
There are a lot of things that can annoy a seller, and you want to make sure you do as few of those things as possible. For example, be flexible on the closing date, and find out what works best for the seller. Don't ask for personal property or things that aren't on the listing. Also, add as few contingencies as possible. When it looks like you are the easiest buyer to work with, you have the highest chance of being the one to win the bidding war and get the house. The seller isn't obligated to pick the highest offer, so you may be able to win with other tactics.
2) Be Prepared
You should have your pre-approval letter ready to go, so you can make a move as soon as you see something you really want. Study the market, and when you see a house you like, you'll be able to tell whether or not it is a good value. Even if you pay the list price or over, you could be getting an excellent deal. Don't be afraid to move quickly when you find the house that's right for you. The odds are high that someone else knows it's a great deal, as well.
3) Go For it!
Make sure you come in with your highest and best offer. Can you spend a little bit more, to get the house you really want? There generally isn't a big difference between your current offer and another $1,000 or $5,000, amortized over 30 years, and that little bit could make or break the sale. You can also write a letter to the seller about why you love the house and are the best person to buy it. Talk about your family, and include a picture.
4) Listen to Your Realtor
Your Realtor's help is very important, and you need an agent you can really trust. Many clients have to lose a house before realizing how the process works, and you don't want to be one of those clients. Make sure you hire an experienced Realtor, so you won't have as many worries. That way you have the best chance of getting the house you're dreaming about, instead of losing it to another bidder on a Realtor's bad advice.
If you follow these four tips, you can have a good chance of getting the house you really want. Don't lose to another bidder over something simple. Taking action today could mean getting the house of your dreams tomorrow.