As a seller, bidding wars on your home are welcome, but if you’re a buyer trying to obtain your ideal home, bidding wars add an extra layer of complexity to an already complicated process.
Having the right agent to help you through makes all the difference. Here are some tips to make your offer stand out and be more appealing in a bidding war.
- Escalation Clauses – An escalation clause is a contract addendum we can add to your offer that will automatically increase your bid by a certain amount up to the maximum you’re willing to pay. For example, if you’re willing to pay up to $220,000 for a home, you can place a $200,000 bid and, if someone else outbids you, an escalation clause would automatically increase your bid by your predetermined amount, at which point you would automatically be taken out of the running. This ensures that you are always the top bid (unless another bid exceeds your predetermined maximum).
- Relationships – In a bidding war, the person offering the most money isn’t always the person who wins the home. Writing a personal letter to the seller explaining how much you love their home and what their home would mean to you and your family can give you a leg up on the competition. We can even include a picture of you and your family so the seller can see the face behind the bid.
- Flexibility – Most home sales involve a certain number of contingencies that a seller has to agree to for a buyer to purchase their home. There are some indispensable ones likes passing a home inspection, but in a bidding war, minimizing other contingencies can grab the seller’s attention. Many times, the most important aspect for a seller to desire is the closing date. Exploring the desired dates and contingencies up front can alleviate possible objections from the seller that will make your offer lose out.
My advice to you is to know that the market is extremely tight right now and if you want to buy the home you are making an offer on, then make it a great offer. I always have buyers ask “what will it take to make my offer acceptable?” The answer is simple; if you want to buy the home, buy the home like you would when items you purchase aren’t negotiable. Asking for closing costs to be paid by the seller hasn’t been working recently. Low ball offers have been rejected. At RE/MAX we are experienced and knowledgeable about the real estate market, connect with us today to get started on your home buying journey. We will guide you every step of the way.