An interesting phenomenon happens every so often when home listings are down and buyers are eager to get into homes. It's called Bidding wars! It can be common to encounter this when a home is prices well or when supplies are low. We have seen up to 10 offers come in on one house.
We thought it would be good to help give some ideas on ways to improve and increase your chances at winning a bidding war. Here are 5 helpful tips!
1. Have a lender on speed dial.
In today’s market you really need to have your prequalification from your lender. This means having everything (financial) in to your lender so they can qualify you and have a letter ready to go when you want to put in that offer.
2. Cash in pocket and the paperwork to prove it
There are several advantages to being an all cash buyer such as waiving the appraisal fees and other closing costs. Be prepared to show proof of funds if you make an all cash offer. Also, a buyer getting a loan can provide proof of funds with your offer along with a strong lender approval to make the offer more attractive.
3. Make a fast and personalized offer.
You and your agent should always be ready to view the newest homes on the market so you can move quickly. Get that offer in as quick as possible. When competing against other buyers, sometimes a personalized letter with the offer regarding your purchasing situation can help your offer stand out to the sellers.
4. Keep home inspector on alert.
If you are serious about a home you may be able to have an inspector walk through the house with you to do a visual inspection of the house before making the offer. You then can make an offer with a shorter time frame to close if the inspector is ready to get in there as soon as the offer is accepted so they can do a full inspection.
5. Eliminate or reduce any contingencies.
You can reduce other contingencies, like the inspection time frame mentioned above, such as time frames for reading CC&R’s and the Seller’s Property Disclosure. Have the agent reach out to the selling agent and a title company to get these items quickly.
With these tools you will be able to jump into the Bidding War’s and compete with other buyers. If you are you are ready to look for your dream home, feel free to call one of our agents today! They are more than willing to answer any questions you have.