How To Win a Bidding War

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With how fast paced the real estate market is, homes are being snatched up right and left.  This often leads to multiple offers and we want you to win that bidding war.  There are several ways to give yourself the upper hand and America’s Choice Realty is ready to help you negotiate through those deals.

1. Find The Dream Team

Finding the right real estate agent and mortgage lender are essential.  Try to find two people who have worked together before because they know how it goes and can make everything run so much more smoothly and quickly.  The real estate agent will be your right hand man in getting you quickly in to great homes and showings, then give you advice when you should put in an offer.  Your mortgage lender can make sure you are preapproved so you will have the upper hand when you are ready to put in an offer. Having the preapproval letter shows you are already approved and able to purchase the home. This is one more advantage for you when you are ready to pounce on a house and win the bidding war.

2.   Listen to Your Gut

If you really love a home, go with your feelings and put in an offer.  You want to be one of the first ones so you know where you want to go when other offers come in.  You and your agent should be watching homes for sale constantly so you will know when things go up on the market and can quickly go to the showings.  Do your research beforehand so you can go in ready with an offer on the spot if it turns out to be right for you.

3. Consider an Escalation Clause

This is kind of like ebay.  You can strengthen your offer by putting in an escalation clause which states you’re willing to increase your offer to a certain amount if other offers come in that match or go over your initial bid.  This is a really great strategy to show the seller you are serious, but remember to remain within your budget.  Just like ebay, it’s easy to get carried away with a bidding war when you really want a house.  You don’t want to lose it because you then can’t qualify for your offer.

4. Write a “Love Letter”

So I’ve seen this several times, so it must be working.  Taking the time to write a letter to the sellers telling them how much you love their home, talking about your family, even including a photo can pull at their hearts and swing hope in your direction.  Houses are pieces of peoples lives and sometimes the emotions involved can change someones mind to go with one buyer over another.  You still of course need to be prepared with a competitive offer, but every little bit helps.

5. Don’t Count Yourself Out

Even if you lose the bidding war, make sure your agent keeps in touch if you are still interested in the house.  Sometimes things fall through.  The deal could fall apart on appraisal, or the buyer might be bidding on multiple properties and change their mind.  They could be a difficult buyer and the seller might want to go with you instead.  Don’t run away just because they said no the first time.  Also, don’t get discouraged if you missed out.  Just keep looking! Another house is always going to pop up.

The home buying process can feel stressful and you may lose a bidding war or two before you find the right home for you.  America’s Choice Realty has experienced real estate agents ready to help you navigate the waters and work with you until you find the home of your dreams.  Call us today at (702) 685-6531

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