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4 Tips to Winning a Bidding War When the Housing Market is Difficult

Written by Posted On Tuesday, 31 July 2018 11:49

Bidding wars on real estate can occur in any type of housing market, but they may be more common in competitive markets. In some cases, buyers may place offers on house after house and regularly lose out to other buyers who made more attractive offers. This can be a frustrating experience, and it also means that you must take even more time to search through listings and find homes that may meet your needs. You may be able to more successfully win in a bidding war when you follow these important steps.

Pull Together a Larger Deposit

Your real estate agent will likely tell you what the typical deposit is for your market, but you do not have to follow the market norms. When you make an offer with a larger upfront deposit, you may show the buyer that you are more serious about the home than other buyers who are making offers. This is particularly true if you make a larger portion of that deposit nonrefundable. You may even attach a copy of a check for the deposit with your offer.

Get Prequalified

Before you make an offer on a home regardless of market conditions, it makes sense to get prequalified by a mortgage lender. Your prequalification letter from a lender can be attached to the offer so that the buyer sees that you have the financial means to follow through on your offer. This step is even more important when you are competing against other buyers.

Personalize Your Offer

Another smart idea is to personalize your offer in some way. Your real estate agent can speak with the seller’s agent to determine what the seller’s hot buttons are. For example, does the seller want to sell quickly? Is there seller more motivated by higher offers? You can tailor your offer specifically to appeal to the seller’s needs.

Choose a Realtor with Solid Negotiation Skills

Another essential step to take when you are buying a home in a tough market is to hire real estate agent services. Avoid making the assumption that all real estate agents have the same negotiation skills. When you are interviewing real estate agents, specifically inquire about the agent’s previous successes with negotiations.

Even when you follow these helpful tips, there is always a chance that the seller may receive a more attractive offer from another party. However, these beneficial tips may improve your chance of success in a tight market.

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Meghan Belnap

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