Increase Your Chances of Winning a Bidding War

Bidding War

This can cause a great deal of stress and anxiety for home buyers and can downright drive buyers’ agents to drink.  One of the most uncomfortable parts of any agents’ job is calling a buyer client to tell them that their offer was not accepted.  It simply sucks!  Unfortunately, most buyers in our market do lose out on a few bids before finding a home. There are a few simple strategies that can increase a buyer’s chances of getting an offer accepted.

 

1.  AN IRON-CLAD PRE-APPROVAL SPEAKS VOLUMES:  

Working with an experience local mortgage broker and bank with a solid reputation means security.  It means if they put their name on a pre-approval, they are nearly certain that the deal will happen.  If you have this and your competition has a pre-approval from a larger bank with a mortgage professional that is not local and does not know the market, you have a HUGE advantage.  Don’t take this step lightly…  Prioritize getting a solid pre-approval today.

2.  MAKE SURE YOUR REALTOR® IS ACTING AS YOUR DETECTIVE:  

A good buyer’s agent will gather as much intel as possible, and find out what is important to the seller.  What is the seller’s time frame?  How many decision makers are involved in selling the home?  These questions should be pretty easy for a buyer’s agent to obtain, but many agents often forget.

3.     MAKE SURE YOUR REALTOR® IS ACTING AS YOUR AMBASSADOR:  

A good buyer’s agent will act on your behalf as your diplomat or ambassador.  They should have a friendly conversation with the listing agent, show them they are working with a fellow professional, and let them know that you are a great buyer(s).  I cannot tell you how many times over-zealous buyer’s agents blow deals for their clients because they fight with the listing agent.  Remember, a listing agent is looking for the best offer to move forward.  The price and terms will have to be solid, but the listing agent is also looking for a partner in peace that they can work with to ensure a smooth and successful sale.

4.     MAKE YOUR OFFER STAND OUT FROM THE REST…..IN A BIG WAY:  

This is where you can really shine and increase your chances of getting the offer accepted if you do one of all of the following:

·      CONDUCT YOUR HOME INSPECTION BEFORE SUBMITTING THE OFFER

·      INCREASE YOUR EARNEST MONEY DEPOSIT WITH THE OFFER 

·      CONSIDER AN ESCALLATION CLAUSE (Example, buyers’ will pay $x above the highest bona fide offer, up to $x).

·      WAIVE ANY CONTINGENCIES YOU CAN WAIVE (There are a host of contingencies you can waive, but you should consider the risk of waiving each contingency. Discuss with your real estate agent, mortgage professional and other advisors before taking this route)

·      INCLUDE A LETTER WITH YOUR OFFER (It can be corny, I know, but it allows an opportunity to make you stand out.  A good agent can help you with this.)

Although there is no silver bullet or magic pill to use in a bidding war, using as many of these strategies as possible will greatly increase the chances of your offer being accepted!

If you are considering purchasing a home, contact COVELLE & COHEN and we will make you happy house hunters and happy home owners. #NEWYEARNEWHOME