Tips for coming out on top of a bidding war
It can be extremely exciting to search for a new home, whether you are a veteran or novice buyer. Every listing is different and can come with its own set of frustrating situations. Given the current low rates that have remained over the last two years, a buyers-market has emerged and with it some intense bidding wars. It has become so common that just last year over half of every house sold in the Washington D.C. area was awarded through bidding. To fully prepare yourself as you engage in the house market, it can prove extremely beneficial to take steps to understand the art of the game. The following are a few tip to give you that edge you may need to come out on top.
Make your first offer a noticeable one- One thing is for certain, and that is you can’t win the game if you don’t get in it. Sellers rarely take lowball first offers seriously. This being said, it is suggested that in order for your first offer to be taken seriously, the figure should not be below 99% of the asking price. For some this may present a fine line of working within your range and making an offer as high as you can to receive the most consideration. This can lead to a number of tricks to give you an advantage like increasing the amount of earnest money you put down for one.
Stay flexible- Most individuals are eager to get a deal done, although there are always those that are not. When high-stakes bidding wars ensue, the principle of patience can be an asset. This usually introduces the time to consider and enact other options to make your offer more enticing. Different options to the inspections, leasing, and financing agreements can play major factors. Even presenting a seller that isn’t quite ready to move with rental options can make your offer stand out above the rest.
Negotiating tactics- Things can become even more complicated when a situation involves multiple buyers. There are still ways to ensure you come out on top. When considering waiving inspection, leasing, or financing contingencies it can provide an added leverage but does come with some added risks as well. Studies have shown that employing tactics can increase your odds of winning up to 23%. Some of these methods may not be feasible for low income and credit buyers, but there is still another option to try. Presenting the seller with a cover letter has been said to increase winning odds up to 18%
For assistance or more information you can always contact your local mortgage agent.
