Have you ever located the perfect home only to have your offer rejected? When prices increase, and inventory is low in seller's markets, buyers must typically go all out to ensure that their offer stands out. Multiple buyers bidding for the same home can often result in a price (bidding) war. Each party seeks to outbid the other. Here are five tips to help improve your odds of obtaining the home you desire when other bids are made on the same house.
1. Have a Pre-Approval:
It helps to get a pre-approval letter from your lender confirming that you can purchase the house you are interested in. Ensure the pre-approval paperwork you display is relevant to the home in issue (Lake Ozark Realty can help with this task). If your goal is to win the bidding war on a house you are interested in, produce your pre-approval letter. If the other individual can't produce a pre-approval letter, the seller will likely go with the potential buyer who is able to show their intent to purchase.
2. Increase Your Initial Offer by 5 to 15%:
Increasing your initial offer can be beneficial if you're up against other interested buyers. Suppose a bidding war drives the price above what it appraises. By increasing your initial request by 5 to 15%, you will increase the chances of obtaining the property. Back up your assertion with financial proof in adding to a verbal vow to increase your initial offer. Presenting documentation will demonstrate that you are willing and have the financial means.
3. Escalation Clause:
When it comes to winning a bidding war, an escalation clause can be beneficial. An escalation clause is an addition to your offer which specifies that if another bidder matches your offer, you'll be willing to increase your offer by a certain amount. It stipulates that you will increase your offer by a specific increment, up to a certain limit when any other bid is placed. Collaborate with your Realtor to create an escalation clause that matches your strategy and your budget.
4. Waive your contingencies:
Contingencies are requirements that must be completed to finalize a real estate transaction. If these requirements are not met, the buyer will have the option to cancel the transaction. Waiving your contingencies can demonstrate how serious you are about closing the deal.
5. Getting Personal:
While money will almost always be the decisive element in a real estate transaction, personalizing your appeal never hurts. If you fall in love with a home, write a note to the seller. Be honest and open about why you care so much about their property and why you believe you're the appropriate buyer. Don't be afraid to show emotion. This strategy may work for a seller with a deep emotional attachment to the property.
Lake Ozark Realty:
Winning a house bidding war requires a combination of planning and help from a great Realtor. At Ozark Realty, we are the oldest and most respected Real Estate Brokerage at Lake of the Ozarks. As local brokerages continue to fall behind, Here at Ozark Realty, we have the lifestyle for you! Ozark Realty continues to evolve. We continue to help assist our customers every step of the way, ensuring that they make the best decisions possible at all times.
If you are considering selling your property at Lake of the Ozarks, contact Tanya Newberry at firstname.lastname@example.org