Bidding wars are often a buyer’s worst fear when it comes to purchasing real estate. Once you have found a home you love the last thing any buyer wants to hear is that have been out bid and could lose their new home to a higher or more appealing offer. Luckily there are a few ways you can try to avoid a bidding war.
While in some cases you may want to offer less than the asking price or ask for a portion of the closing costs to be paid by the seller if you’ve found a home you love and don’t want to lose, make sure that your offer is highly appealing to the seller so that the thought of entertaining other offers is not as desirable. It is always recommended to make an at asking or even above asking price offer in this situation. You of course want to ensure that the market value matches the asking price prior to placing an offer.
Another great way to have your offer rate highly with the seller is to make sure you are already pre-approved for the purchase. This will show the seller that you are not only serious about the purchase, but also have the needed funds to do so and are ready to move to the next steps of the buying process.
It is extremely common for sellers to receive contingent offers. While contingent offers aren’t always a bad thing, it does oftentimes look less appealing to the seller. Placing an offer that is free of any contingencies will make the offer look more appealing than offers that may be placed with one, thus helping your offer stand high above the rest.
Lastly, make sure to communicate to your buyer’s agent that you are flexible with a closing date. This allows the seller to get their affairs in order and close when it is most convenient for them. While it might mean you are in limbo for a short period of time, the seller will appreciate being in control of the closing date and won’t feel pressure to close by the buyer’s needed dates.
Unfortunately, even by following these tips, you are never guaranteed to avoid a bidding war, however, with the right knowledge and an excellent buyer’s agent, your chances of being outbid will drop drastically.
If you are currently searching for a new home, are in need of a qualified buyer’s agent, or have any questions regarding the buying or selling process, please feel free to contact my office at any time.
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