Purchasing a home is an exciting time that marks a new beginning for many people. But obtaining your dream home can certainly be a process that people aren’t always prepared for.
One common situation that occurs in the homebuying process is a bidding war. A bidding war occurs when there are multiple buyers for one property.
This doesn’t just increase competition but pushes buyers to think of creative ways to get the attention of the seller and ultimately get their offer chosen.
Today we’re going to share 3 tips to help you win a bidding war and get the home of your dreams.
Get a Preapproval
If you want to get one step closer to securing a home, then having a preapproval letter is critical. Today, many sellers won’t even consider a buyer if they don’t already have a preapproval from a lender.
A preapproval letter shows that you are a serious buyer and that you can afford the home you’re interested in. This makes your offer more attractive to the seller and increases your chance of getting your offer accepted.
A real estate contingency is a clause that outlines a condition or action that must be met by either party for the contract to be binding. Essentially, contingencies are beneficial to both buyers and sellers.
However, if you’re a buyer facing a bidding war, you might want to consider waving contingencies to secure the home. The more contingencies that a buyer includes, the more the seller will need to do.
This can lengthen the selling process and can steer sellers away, making them go with an offer that has fewer contingencies in place.
Give More Than the Asking Price
Another option if you’re facing a bidding war is to offer more money than the asking price. Money talks when it comes to real estate, and it’s a great power move if you have it to spare.
This advantage goes straight to the seller and they will be motivated to accept your offer knowing that they will be getting more out of the deal.
Bidding wars can feel overwhelming, but there are ways to successfully win a bidding war. Be sure to get a preapproval letter, consider waiving contingencies, and think about offering more than the asking price.