Bidding wars are common in hot sellers markets. When home inventory is low and prices are high, buyers often compete with one another to get the most desirable houses. Knowing how to win a bidding war is important in these markets. These tips can help serious buyers to stand out from other competitive home buyers.
Get Pre-Approved for a Mortgage
Pre-approved offers are far more attractive than offers from pre-qualified buyers. This is because a pre-approved offer is closer to a sure thing than an offer from a pre-qualified buyer. Home buyers can stand out from other buyers by getting pre-approved at the beginning of the search for a home. While the pre-approval process does take more time, a pre-approval can help buyers win a bidding war with another buyer.
Be Quick to Submit Offers
Promptness can help in a bidding war. First of all, home buyers who get their offers in first often have a good chance of getting their offer accepted without ever getting into a bidding war. Once in a bidding war, a prompt response to all offers can help ingratiate the buyer to the seller, which in turn could lead to good will and an offer acceptance.
Write a Letter to the Owners
People can become very attached to their home over time. When the time comes to sell, many home owners want to know that their home will be enjoyed, appreciated and loved. Sometimes, it's possible for home buyers to win the heart of a seller by writing a personal letter. Usually, these letters include information about the buyer's family, hobbies, what they like about the home and why they want to live in the neighbourhood. The more heartfelt and detailed the letter, the better. Sellers tend to like these letters because it adds a personal touch to the experience.
Sweeten Your Offer
Often sellers want more than money. There are many ways that buyers can sweeten their offer without significantly increasing the purchase price. Some of the ways that buyers can make their offer more attractive to sellers includes:
- Stay flexible on the move out date.
- Give the seller the chance to rent back the house if it's needed.
- Waive the contingencies.
These small gestures can make the process more convenient for the seller, which ultimately could result in the offer being accepted.
Know Your Limits
Everyone has a limit. It's important to know how much is too much to pay for a home, though this number varies from household to household. Buyers who don't establish these limits at the beginning of their home search must ask themselves this question if they find themselves in a bidding war.
Home buyers who aren't sure how much is too much to pay for a home must work with their lender and financial advisor to make a budget that will work with their income.
Work With An Experienced Real Estate Professional
Working with an experienced East Calgary real estate professional is important, especially during a bidding war. A good real estate agent can help home buyers successfully negotiate this tricky situation. If you would like to purchase a home for a good price, contact a real estate professional today. Working with a reputable professional can help.