TIPS FOR WINNING IN BIDDING WARS
(OTHER THAN OVER PAYING!)
Photo by Niels Steeman
The summer market is competitive! So chances are that if you fall in love with a home, someone else probably has too. Here are some tips for how to win bidding wars without having to pay an outrageous price!
1. Write a Personal Letter- Include a letter written by you to the sellers. Tell them your story, about your family, why you love the house, and anything else you can think of that will pull on their heartstrings! Connecting with the owners on a personal level will make it tough for them to say no!
2. Pre-Offer Home Inspection- Houses are HUGE investments, and it’s important to make sure that the house you’re buying has been inspected. However, an offer that has a home inspection as a condition will likely never win a bidding war, as you can pretty much walk away for anything that doesn't satisfy you. Because of this, do the inspection before you put in your offer. This way the offer will be much more appealing and you'll know any deficiencies heading in.
3. Possession- Figure out the seller’s perfect possession date. Even if this means an extra month of rent in your apartment, pleasing the seller will be worth it if it means getting your dream home!
4. Pre-Approval Mortgage Letter- Another thing to keep the sellers mind at ease! When you're writing a competing offer you'll likely have a finance condition, Attaching a letter that states you're pre-approved from your lender allows the seller to see you've done you're homework, and the bank will most likely approve you once they have an accepted offer to work with.
5. High Deposit- A deposit is part of the down payment that you make on a home, and will ensure the owners that you aren’t going to back out down the road. Because it’s coming from the down payment, giving them a high deposit doesn’t actually mean that you pay any more money than you would with a low deposit, it just shows your commitment!