How do you win when there are multiple offers on the home you love? In most cases, the key to the strategy is to fit the needs of the seller. Here are some ways that potential buyers can increase their odds of winning when they are up against multiple bidders.
Offer The Best Price
One of the best ways to win a bidding situation is by offering the best price. If you can offer just enough to outbid the competition, you will most likely be the top choice of the seller.
It is not uncommon for offers to come in extremely over asking price, especially in high-competition markets. As a buyer in this type of market, it may be necessary to do in order to get the house you want.
Remove Appraisal Contingency
Removing any extra steps in the process can also make your offer more enticing to sellers. And, the reality with an appraisal in a high competition market is: you may offer way higher than the asking price to have a better chance of winning, but there is a good possibility that the property may not appraise as high as you offered.
By adding a clause like this into the contract, you’re decreasing the odds of being the winning offer.
Write a Personal Letter
If you’re extremely set on a property, a personal letter to the seller can put you ahead of other buyers. This allows you to pull on the heartstrings of the seller and highlight the things you have in common.
You can use it to explain how the home or property would be ideal for your children, to help you serve the local community, or any other reason that you feel like the home is ideal for you.
Waive Your Financing Contingency
The financing contingency is the agreement you make with the seller that you’ll only purchase the property if your home loan comes through. With a waiver, you tell the seller that you’re extremely confident that you’ll get the loan no matter what.
If the mortgage is denied, you’ll lose your earnest money deposit, which is typically 5% of the purchase price. Waiving the financing contingency can seem a bit scary for this reason, but it can be done with minimal risk on the buyer’s end. You’ll just need to find a lender that will agree to a fully underwritten loan pre-approval.
Keep Other Contingency Periods Tight
If you have other contingencies in your contract, keep them tight. Sellers typically do not want to see offers that will extend the timeline longer than they’re hoping for.
Keep the Home Inspection Time Frame Short
If you have a home inspection contingency, try to keep the time frame short. Sellers often see contingencies as potential road blocks, and home inspections can often be used as points of renegotiation.
In a strong seller’s market, the last thing a seller wants is to wait for an extended period of time for a home inspection. By making the time frame short, you’re relieving the seller of one of their hurdles.
Give the Seller their Desired Closing Date
For most sellers, the closing date on their home will be a significant factor in their decision-making process. This can be especially true if a seller is buying and selling at the same time.
The coordination of buying and selling can be stressful, so giving the owner the close date they want can be the difference between getting the property or not.
Talk to Your Agent About the Best Strategy
Bidding wars can be tricky situations, and you want to put yourself in the best position possible. Discuss a plan with your agent & they will help you increase your chances of success.
Team Melton has over 50 combined years of real estate experience to assist you through every step of the process. Contact us today to get started on selling your home!