How to Win a Bidding War

  • Get Pre-Approved

    Before you start looking for a home, you should get pre-approved by a mortgage professional to determine your purchasing power,  It only takes a few minutes and gives you enormous power in the purchase process:

    YOU’LL SAVE TIME.  You can quickly narrow in on the right price range.

    YOU’LL SAVE AGGRAVATION.  You can identify any problem areas in your financial qualifications early in the process.

    YOU’LL GAIN CREDIBILITY.  Sellers will take your offers more seriously if you are pre-approved.  In some instances, your lender may even give you a commitment so that you don’t even have to include a home inspection condition in your offer to purchase.

  • Deposit Size Matters

    When you submit an offer to buy a home, the deposit demonstrates your commitment to the seller to complete the purchase. It also shows that you are comfortable taking on some level of risk by putting down a deposit until the deal closes.  Meager deposits often leave sellers questioning a buyer’s sincerity or commitment.

    You can read more about larger deposits but checking out our blog entitled “Does Size Really Matter“.

  • Do a Pre-Offer Home Inspection

    Home inspections are commonplace. In fact, many deals hinge on the
    completion of a home inspection report that is satisfactory to the buyer involved.

    However, in bidding wars it’s often the case that buyers won’t include a home inspection condition in an effort to make their offer more attractive to the seller.

    The risk to a buyer in doing so is in today’s seller’s market it’s not uncommon for people to forgo a home inspection in order to make their offer more appealing to the seller, but with this decision comes significant risk. You may get the house, but you might also get a whole host of unexpected and expensive problems with it.

    If you’re confident that you’re going to purchase the property before even going to look at it, consider arranging to have a home inspection completed at the very same time so that you know what condition the home is in and can make an offer accordingly.

  • Know what matters to the seller

    Determining what items may impact the seller’s decision before making an offer is key.  Things like their ideal closing date or included and excluded items can help make your offer more appealing.

  • Talk to Your REALTOR®

    It can be challenging to decide on which bidding war strategy is right for you. Have a careful discussion with your REALTOR® to determine what path is the clearest one to winning the home you want. There could be some local customs you are not aware of.

    Formulate a plan with your real estate agent on what it will take to land the house. Have your agent speak with the listing agent to find out what if anything can be done to make your offer more attractive.

    If by chance you’re not successful, consider making a “back up offer if the offer which the seller accepted is conditional (e.g., upon the buyer arranging financing).

    A backup offer is the term used to refer to an offer that is submitted to a seller after the seller has already accepted an offer.  In the event the offer which the seller accepted with conditions can’t be fulfilled, your back up offer immediately takes priority!

If you’re thinking of buying navigating the complexities of the current real estate market we can be contacted at 519.586.7922, 519.426.2072 or office@eriesedge.com.

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