07/15/2022
📌Tips for winning a bidding war📌
Ever found that perfect house only to get outbid on your offer? In a seller’s market, when the demand is high and inventory low, buyers often have to go above and beyond to stand out from the competition. There’s no magic formula behind winning a bidding war on a house. There are, however, things that you can do to up your chances.
✔️ Up your offer
Money talks. Your best bet if you’re set on winning a bidding war on a house is, you guessed it, offering more money than the other person.
✔️ Show your pre-approval
Sellers are looking for strong buyers who are going to see a contract through to the end. To let them know how serious you are, it helps to have a pre-approval from your lender clearly stating that you’ll be able to borrow enough money to purchase the house.
✔️ Increase your down payment
If you’re up against another buyer or buyers, it can be incredibly helpful to increase the amount you’re willing to put down. A higher down payment means less money will be required from the bank, which is ideal if a bidding war is pushing the price above and beyond what it might appraise for.
✔️ Humanize your offer with a personal appeal
It never hurts to humanize your offer with a personal appeal. If you love the property, let the seller know in a letter. Be open and honest regarding why you feel so strongly about their home and why you think you’re the right buyer for it and don’t be afraid to get a little emotional. This tactic isn’t going to work on all sellers, but on a seller who themselves feels a strong connection to the property, it may make a positive impact.
