Tips For Standing Out in a Bidding War
Getting involved in a bidding war is never ideal. There are too many variables that could get out of hand, and ultimately, you may lose your dream home in the process. So how can you stand out among other potential bidders? What can you do to make your offer the best one for the seller? Here are a few tips to help you secure your dream home:
Tip 1: Be Prepared
It is important to have your own to-do list completed before making an offer on a home. An important first step on this list is getting preapproved for a mortgage. It not only helps you look for a home that is within your budget, but it helps you stand out among other potential buyers. Having a preapproval letter ready to show sellers will help them see how serious you are about buying a home. This will also expedite the buying process because you have already secured your lending and you do not have to wait around for loan approval.
Tip 2: Get Personal
Writing a letter to the homeowners can also help you to stand out from the other potential buyers. Telling them about your own story, where you’ve come from, how you’ve lived your life, and most importantly, how you see your future, will help the homeowners visualize you in the home and create a more personal connection with them. Adding in your hopes and dreams of filling the house with your own memories of using the backyard for family events or hosting dinner every week with friends and family are all things that can help the owner see the life you plan on living in the home. Feeling as if they are leaving their home in good hands will help them feel confident in choosing you as the best buyer.
Tip 3: Be Flexible
Presenting yourself as flexible with the closing process will make your bid that much more attractive. While it may be ideal to make an offer and close on the house in just a few weeks, sometimes there are hiccups to those plans. The owners may run into issues with their own closing date and procedure that may keep them in their old home longer, or they may want to accelerate your closing to move into their new house sooner. Communicating with the seller that you are flexible with the closing date could put you in a prime position to have them accept your offer over the others.
Tip 4: Consider Cash
Incorporating more cash into your bid will assist in presenting yourself as a more qualified and viable bidder to a seller. This doesn’t necessarily mean an all-cash offer, as that isn’t attainable for most buyers, but increasing the amount of cash you have saved for the down payment for the house will grab the seller’s attention. You may have a budget you are sticking to based on your preapproval, which is great and helps you stay on track, but when you’ve gotten to the end of how high you can bid, consider offering a higher down payment in cash rather than upping your overall bid. If you and another buyer are neck and neck for the property and you are both putting down the same amount of cash, this may be the area in which you can stand out. If you put down just a little more, the owner may see how serious you are about the property and consider you the more favorable candidate.
Knowing how to market yourself as a buyer is something that takes time and effort. You want to know what the seller is looking for and how you can present yourself as the answer to their search. Working with your realtor on how to make your offer the most attractive is key to helping you secure your dream home.