Now that the housing market is heating back up, you’re likely going face stronger competition from your fellow buyers. So what do you do when you’ve found the perfect home, and it turns out that someone else thinks it’s perfect too?
Here are some expert tips to help you come out on top in a bidding war:
Get Your Finances in Order
Getting pre-approved for a loan will go a long way towards winning a bidding war. It shows you’re committed and helps to eliminate any doubts a seller may have about your financial ability. In a competitive market, your offer might not even be considered if you do not have a pre-approval letter.
Master Your Cover Letter
Your offer should contain a cover letter along with a pre-approval letter or a proof-of funds document. Your cover letter should showcase why you want the home, what you do for a living, your interests, and also how you see your future unfolding in this property. If you truly love the home, don’t be afraid to reveal why you and or your family belong there. Creating an emotional connection can help you stand out among the other bidders and give you an added advantage.
Much like a cover letter for a job, your offer cover letter is a pivotal element to getting noticed by the seller and can make or break your chances of getting the home.
As they say, the early bird gets the worm. Be the first with an offer that matches the asking price or comes in slightly below, to increase your chances of winning a bidding war. It shows you’re a serious buyer and that you value the home you’re bidding on. To give your offer some added urgency, put an expiration date on it as well.
Make a clean offer
The simpler the offer, the more likely the seller is to accept it. While you may be tempted to outline all of your “must-haves” upfront, these are better left until after you’ve made it a few steps further in the buying process. You’ll still have an opportunity to negotiate repairs, closing costs, furniture, and any other wants after the inspection.
Keep Your Emotions in Check
Don’t let your emotions over-rule all of that hard work you put into researching asking prices, looking at schools and scoping out the neighborhood. These are necessary to make a sound decision and sometimes all logic goes out the window when you fall in love with a home. Don’t let yourself step outside your price range in the heat of the moment. There will always be another home but there isn’t always more money.
If you’ve found yourself in the midst of a bidding war and need some expert advice, contact our knowledgeable and friendly team at 855-441-6288.