4 Steps To Winning The Housing Bidding War
November 9, 2022
If you’re in the market for a new home, you may be wondering how to win a bidding war. With so many buyers and so few homes on the market, it’s no wonder that bidding wars are becoming more and more common. If you find yourself in a situation where you’re competing against other buyers for a home, here are four steps you can take to increase your chances of winning.
Get pre-approved for a mortgage
One of the best things you can do to increase your chances of winning a bidding war is to get pre-approved for a mortgage. This shows sellers that you’re serious about buying and that you have the financial ability to do so. Mortgage pre-approval is also an important negotiating tool that can give you an edge over other buyers who haven’t gone through this process. Thankfully, ABSM’s quick and simply online preapproval process makes it easy to get ahead of the competition!
Make your best offer up front
In a situation where there are multiple offers on the table, many sellers will choose the offer that’s the highest above their asking price. If you really want the home, it’s important to make your best offer up front and avoid getting into a prolonged negotiation over price. This approach also shows the seller that you’re serious about buying and gives them less time to entertain other offers.
Write a personal letter to the seller
One way to stand out from other buyers is to write a personal letter to the seller explaining why you want to buy their home. This gives them a chance to see you as a real person with real interest in their property, rather than just another number in a multiple-offer situation. Be sure to keep your letter short and sweet – the seller likely has dozens of other offers to sift through and doesn’t want to waste time reading pages upon pages of text from each buyer.
Have your agent work with the listing agent
If possible, have your real estate agent reach out to the listing agent directly and start working together early on in the process. This way, they’ll be able to get an idea of what kind of offer would be most likely to succeed and can even help facilitate negotiations between you and the other party. Getting everyone on the same page from the start can help avoid any misunderstandings or miscommunication down the line.
If you’re planning on buying a home soon, it’s important to be prepared for anything – including a bidding war. By following these four steps, you can increase your chances of success when competing against other buyers for your dream home.