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Win a Bidding War


You've finally, after extensive searching, found your dream home! However, in many cases, there will be other buyers interested in the same property. We don't shy away from challenges though, so prepare for a BIDDING WAR!

With a current low housing inventory, units are selling fast, and by that we mean that people are biddingand offering, more money to home sellers. Don't get discouraged though, and set Sun Tzu to the side. This post will teach you all about the Art of Bidding Wars.


1. Offer to Pay Cash.

Do this if possible. A seller would rather deal with a buyer who can pay cash. Nobody wants to have to check if the potential buyer will even receive the financing needed to pay for the house. All parties involved want minimal complications, and this is a massive, massive upper hand on the competition.


2. Get Pre-Approved for Financing

Be prepared and get preapproved for a loan if you need it, and select a lender that offers competitive interest rates. Starting this process will help you save time since there is a lot of documentation to provide. Once that is dealt with, you can show home sellers a letter that details how much you are allowed to borrow.


3. Do Your Research

Start by investigating what is actually on the market, having knowledge of what is available is going to give you an advantage since you will be able to prepare an offer, without wasting the sellers time.


4. Be the First in Line.

Don't be shy; make the first move! Offering first will make the home seller think you're particularly interested, and if there are more offers they, or their agent, know you're likely to up your offer. They're rooting for you because of our human tendency to root for the underdog. You now have to keep up with the competition, and they get to watch.


5. Increase the Refundable Deposit

It is normal for sellers to ask for a refundable deposit when they receive an offer, the amount is typically 1% of the asking price. Now, if you are really interested in the property, show it by increasing the deposit, it can be to 10% or even 25%. If you are lucky and get the house, this money can go directly to the down payment.


6. Make it Personal

Emotions, emotions, emotions! there are people that let their emotions affect their decisions. 

Try to bond with the seller, ask questions, explain how you envision the property if your family had the chance to live in it. Sometimes small details make a huge difference.

Handwritten letters can play a key role in securing good footing with sellers, and is often the illuminating difference between similar offers. We're all people; connect. 


7. Escalation Clause

Be clever if you are willing to use this strategy, and don't get carried away. That said, suggest an escalation clause. That will give you the opportunity to increase your bid if someone else is willing to increase their initial offer.


8. Be Flexible

Think about the sellers' next move or preference. There is a possibility that they will want to move out of the home as soon as possible, or maybe they want to sit on it. Find out what the situation is and let them know that you can be flexible to help meet their needs. Following these steps will help you and your Castles Unlimited Realtor secure for you the home of your dreams! 


So, what are you waiting for? Contact us here and let's get started!