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WINNING A BIDDING WAR

WINNING A BIDDING WAR

Posted In Mortgages, Real Estate at October 6, 2021

Buying a home in the current market is typically accompanied by at least once or two bidding wars. Buyers are always seen as being on the disadvantaged side of a bidding war. We can’t change the fact that right now we are in a seller’s market. So what do we do to help you win a bidding war?

Let’s Define a Bidding War

This is when there are multiple buyers competing for the same piece of property. Every buyer involved tries to make the most attractive offer. However, this usually drives up the prices much higher than the value of the home. If you’ve found your ideal house and really want to win a bidding war, there are definitely a few ways you can put your best foot forward!

 

Pre-Approval

If you’ll be needing financing in order to make your home purchase, you’ll need to have a mortgage pre-approval letter. By giving us a call, we can let you know all the documents you’ll need to bring in for a pre-approval letter.

 

All-Cash Offer

By offering an all cash offer, you can alter the terms of the deal to make them as favorable as possible for the seller. It’s truly the best strategy available to increase your chances of winning a bidding war. Sometimes close can happen in as little as seven days with an all-cash offer. It’s sometimes seen as the safer bet as well because of the financing falling through. That’s why it’s so important to choose the right lender.

 

Choosing the Right Lender

If you don’t already have a real estate agent, then finding one as a referral through your lender can help increase your chances of winning a bidding war. The right lender and real estate agent will have good reputations and connections that could potentially help the seller feel more confident in their choice.

 

Escalation Clause

At the end of the day, there are only two ways that you can win a bidding war: offering more money or your terms have to be better than your competitors. Essentially, the escalation clause increases your initial offers by whatever amount you choose. You will also specify a cap so that you can stay within your budget.

Overall, making sure you’re working with the right lender will help ease a lot of the tension and headache that comes with worrying about whether or not your financing will fall through. By working with us, you can bid with peace of mind.