Here’s how you can be victorious in a home bidding war.
Our current real estate market has low inventory, high demand, and bidding wars are common. How do you prepare for competing against other buyers? I’ve got some key tips to help you do that today:
1. Set your emotions aside. It’s easy to fall in love with a home, and losing it to another buyer can be crushing. To succeed in this market, you need to set all of your emotions aside. The most important thing is to have your finances in order, research neighborhoods, and choose a great agent long before you’re ready to start your search. A willingness to compromise is also crucial.
“Try to create a path with as few speed bumps as possible.”
2. Get pre-approved. It not only shows you’re a qualified buyer, but it also allows you to act swiftly in this hyper-competitive market. It’s important to note that many seller’s agents prefer to work with local lenders.
3. Waive contingencies. The strongest offers waive almost all contingencies. Offers submitted with contingencies and without verification of funds raise red flags for listing agents. In today’s market, you need to be flexible. Homes are moving swiftly, so don’t hesitate to submit a competitive offer. Try to create a path for the seller with as few speed bumps as possible and cater your offer to their needs.
4. Pay in cash. This will almost certainly put your offer at the front of the line. However, not everyone has the ability to do this.
5. Add an escalation clause. An escalation clause says that you’ll pay a certain amount over the next highest offer up to a specific cap. It can help you win even if you don’t make the best initial offer.
If you’re thinking about buying at all or have any questions about real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
