How Home Buyers Can Win the Bidding War
Sellers are delighted to find themselves in a bidding war situation where multiple home buyers are making offers on their property. They are going to have their pick of the many good offers coming in.
However, a buyer in this situation may feel less elated. They are competing against other buyers who want the house as much as they do and have the means to make an offer.
To truly go up against other buyers and win a bidding war, a home buyer has to know what the homeowner is looking for and tailor their offer to fit those needs.
Seller Options
When a seller has many offers coming in on their property they hold all the power in the situation. Buyers cannot threaten to walk away if they do not like a counteroffer because the homeowner has another buyer lined up. The buyers involved have to be more flexible to the seller’s wants.
For example, a seller may simply accept the offer that looks the best to them. This leaves the other buyers to find a new house to make an offer on.
Or the sellers may counter offers to see who will give the best counteroffer back. A few offers may be refused if they are too far away from the price or terms the seller is hoping to settle on.
Tailoring The Best Offer
There are very few sellers who will not accept an all cash-offer. All-cash offers are much more favorable compared to an offer that is contingent upon a mortgage because there is less that can go wrong with the all-cash financing.
When competing with all-cash offers, ready buyers can in turn offer more than the asking price in order to get a homeowner’s attention. It will also be important to have a pre-approval ready with an offer. This shows the seller that the bank is ready to provide a mortgage for the offer amount.
Waiving the right to get an inspection can help the seller if they need to have the sale completed quickly but this is dangerous for a buyer if the home has major problems. In general, being flexible to the homeowner’s needs for closing dates helps the offer be more desirable when in a bidding war.
Winning A Bidding War
A buyer who knows that they are competing against other buyers should not try to low ball a homeowner. Haggling is out of the question for any seller who has other buyers lined up waiting to make a better offer. That is why when in a bidding war situation, it is much better to make the best offer right off the bat in hopes of getting the first offer accepted. A homeowner is not going to make a counteroffer to a low offer unless they have no other choice.
The easiest way to win a bidding war is to make a great financial offer. Offering more than the asking price is best (provided that you can afford to do so). Always pay attention to the timeline the seller needs, as well. Offering flexible closing dates will be tempting for a seller who needs to get out of the home quickly. If the seller has all the power in a sale always make the best offer first and hope the seller finds it to fit their needs.
