What Does It Take for Buyers to Win Bidding Wars?
What does it take to win out against competing buyers? Find out today.
I recently sat down with one of my team’s top agents, Erin Loff, to tackle a question every buyer has probably pondered at least once: What does it take to win a bidding war?
Bidding wars arise when a property receives multiple offers. In these scenarios, buyers vie for the seller’s attention in hopes that their offer will be selected.
In order to improve her buyers’ chances of winning out, Erin always encourages them to offer favorable terms and conditions. For example, while they may still ask that a home inspection be performed, buyers should consider taking care of repairs on their own—rather than asking the seller to do so. Giving the seller an incentive to choose your offer is a highly effective way to stand out from the crowd.
Another way for buyers to make their offer more attractive is by removing the mortgage contingency, thus making themselves as strong a contender as any cash buyer. The only potential pitfall of this is that the buyer must be especially qualified. They should also realize that removing this contingency means forfeiting their deposit if they decide against moving forward with the property.
Erin also says that looking at properties slightly below your budget is a great way for buyers to gain the upper hand in any bidding war that might arise. This is because doing so will give them more “wiggle room” in terms of the amount they’re able to offer. It allows buyers to be more flexible in the event that they are forced to up their bid to “outdo” the competition. Being able to close quickly is another great way for buyers to boost their chances.
Of course, no two transactions are alike. On top of all the tips we’ve mentioned today, our team’s great agents, just like Erin, would be happy to tailor a home buying plan that is specifically suited to your wants, needs, and goals.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.