Dodging Bullets in Real Estate Bidding Wars
While real estate bidding wars do not resemble actual combat, they can certainly be exhausting and stressful, and there is no guarantee that fighting the battle will help you win the war. Maybe you cannot avoid falling in love with a home that everyone else wants too, but with this smart guidance you can keep out of the fray and perhaps even make the offer that comes out on top.
Best and Final Offer, Right From the Start
The first smart thing you can do is make one offer, and make it your best and final one. By starting where you are willing to end up, you can make it clear that you are not interested in going back and forth or competing with other potential buyers. Be sure that your offer is a fair and reasonable one, given the market forces and selling prices of comparable properties. If you want to avoid real estate bidding wars, this is the most important step you can take.
Prove You Are Worth It
Another smart preparatory task that will elevate your offer in the eyes of sellers is to be sure you have your financial documentation in order. Obtain a pre-approval letter that states you are qualified for financing sufficient to cover the offer you have made, and send a copy of that letter along with your offer. Even better, include proof that you have the funds to cover the down payment, and increase your earnest money deposit. All of these strategies will help give sellers confidence that you can follow through on the serious offer you have made.
Cooperation Is Key
One more important way to make a good impression on sellers and stay out of real estate bidding wars is to minimize the contingencies attached to your offer. While financing and home inspection are standard contingencies that sellers will expect, it is essential not to make any unnecessary demands if you would like your offer to compete with those of other potential buyers. Leave out contingencies concerning minor repairs or cosmetic changes to the home. Also avoid imposing any requirements on the seller regarding the closing timeline. The easier you are to work with, the more the seller will want to work with you instead of someone else.
Real estate bidding wars will not cause you physical injury, but they can definitely increase your stress levels and even take you out of contention for a property that you really want. These tips cannot guarantee yours will be the chosen offer, but they can help you minimize casualties on your side.