Winning a Bidding War: Strategies for Success

Bidding wars are more and more common in today’s seller’s market. If you find yourself competing for a house, here are some tips for ways to win.

Get Preapproved

Obtaining a mortgage preapproval letter shows that you’re a serious buyer. Getting preapproved means that a lender has evaluated your entire financial situation, including reviewing your income/assets and debt, credit score, bank statements, and W-2 forms, and they determined that you are eligible for a loan. It’s possible that sellers will not consider your offer without preapproval, so try to get this done if you want a better shot at getting your offer accepted.

Avoid Contingencies

Contingencies are certain conditions that must be met before a home purchase can be completed. Sellers are interested in selling their houses as quickly as possible, and contingencies can potentially get in the way of that goal. By avoiding contingencies, you could make your offer more appealing to a seller since they won’t have to worry about the deal falling through if certain conditions are not met.

Be Flexible

Being flexible on the closing date can make your offer stand out above the rest, even higher offers. Whether the seller would like to close sooner because they’ve already moved out or they’re hoping to close later so they have plenty of time to move, being willing to do what works best for them can make a huge difference when it comes to whose offer they choose.

Offer to Pay Seller Costs

There are some costs that sellers typically pay at closing. If you’re willing to cover those closing costs for the seller, this could entice them to choose your offer, knowing they won’t need to worry about those expenses.

Write a Letter

Writing a personal letter to the seller can add a special touch that may sway a seller to choose your offer. Tell them about who you are, what your family is like, and tell them what you love about the property. Give details about the specific characteristics of the house that you fell in love with and how you imagine yourself using the space. The more you can include touching details about why you want the house, the more a seller might appreciate selling the home to you.

Offer the Highest Amount

The highest offer doesn’t necessarily guarantee that your offer will be accepted, but higher offers tend to be more attractive. Just be careful not to overdo it. You don’t want to go too far over budget and end up in a less-than-ideal situation.

Buying the House of Your Dreams

When it comes to buying a house, there’s a lot to think about. From getting preapproved to navigating bidding wars, it can feel overwhelming. This is exactly why our Loan Originators make sure to be by your side through the entire process, answering your questions and making it as stress-free as possible. To learn more, contact us today. We can’t wait to help you buy the home of your dreams.