What if you make an offer that is too low or too high?

You’ve searched for it, you’ve dreamt about it, and now you have finally found it - your dream home. The only piece left is how to get it. Right now the inventory for homes is low making it a seller’s market. Oftentimes when this happens, we see bidding wars.

A bidding war could happen if you are not the only buyer making an offer. Today, we would like to share with you strategies that will help you win the bidding war and the home of your dreams.

  1. Getting Pre-Approved

These days, you may find yourself competing with all-cash offers. In a recently published article by MSN Real Estate, author Susan Johnston of U.S. News & World Report describes the importance of having your financing ready to go when engaging in a bidding war. Get pre-approved for the loan and bring a copy when you make your offer.

  1. The Right Price

Who doesn’t love a great deal? However, when battling other offers in a bidding war, you don’t want to make an offer that is too low. You also don’t want to overpay. A good real estate agent is worth their weight in gold and can help you to determine the right price.

  1. Be Flexible on the Closing Date

The Housing Guru explains that one way to help win the bidding war is to be sensitive to the seller’s wishes about the closing date. Your agent can find out what would be the most convenient date to close on the house for the seller. You can then do your best to accommodate their wishes.

  1. Cash Truly is King

According to FoxBusiness, all cash offers account for 40% of recent home purchases. There is no denying it. Offering someone cash for their home will be an end to the bidding war.

  1. Be Careful with Contingencies

Another way to make your offer stand out is to be careful with contingencies. Contingencies or inspections can provide delays in the process, which sellers don’t normally like. Make sure that you are only asking for what you refuse to compromise on.

  1. Let the Seller Get to Know You

Recently, my friend’s family sold their grandparents’ home. This home was purchased in 1954, and their grandfather had lived there until he passed away last year. He had made many personal updates to the home that really set it apart, and his craftsmanship had created a lot of pride amongst the family members.

He left the home to his six kids and his wife. One couple that was interested in purchasing the house stood out to the seven sellers. While only one of the seven beneficiaries was the trustee of the estate, all seven sellers had been given a voice in who could purchase the home. It was a tough crowd to please.

The seven sellers were won over by this young couple and were actually excited to sell their childhood home to them because they were the kind of people they could see living there.

The kindness and likeability that the purchasing couple showed got them the favor of seven grieving sellers. 

One way to do this is to write a letter to the sellers describing what you love about the home and neighborhood. That personal touch might be the piece that wins your the home. 

Take Away

One of the best ways to win a bidding war that isn’t mentioned above is to have an experienced and trustworthy real estate agent by your side. They can help you to offer the right price, know which contingencies are needed, paint you in the best light with the seller and offer you the advice you need to win your dream home. The Jamey Kramer Group would be honored to help. Please call our office today.