We see it alot in Charlotte. People are getting multiple offers on the same home in a short amount of time. It’s great news for the sellers who wait anxiously to see which potential buyer will go even higher or who will make an enticing concession to make the offer more attractive. But for the homebuyer it’s like swimming with sharks.
An experienced agent can help you avoid a bidding war in the first place by making the best offer possible from the start. However, there are times that even the best made offer comes up against stiff competition. Your agent can also help navigate the bidding war process and keep your emotions in check (trust us, that’s more important than you know).
In our experience there are a few techniques that can help your offer to stand out from the competition.
- Get pre-approved for a mortgage. Cash talks. That is why real estate investors often make cash offers to eliminate the need for an appraisal. However, most regular folks do not have access to that much cash at once. Securing a pre-approval letter is the next best thing. Knowing your finances won’t be an issue is a relief for sellers. Sellers like a slam dunk.
- Eliminate contingencies. This technique can help you, but you’ll want to consult with your real estate agent first. Contingencies are specific conditions that must be met before the sale can be completed. Contingencies serve a useful purpose to protect you from issues involving the home’s structure, or safety. They also protect you from discrepancies in value that affect your mortgage terms. Sellers don’t want to have to relist because a sale fell through over a contingency. The more contingencies you eliminate the more you shift the risk from seller to buyer (you!).
- Be flexible about closing schedule. If you can give sellers more time to finish repairs or work with them on when they want to close, that can work to your advantage.
- Increase your offer. Remember a higher amount will increase your mortgage payments so make sure the counter offer is still within your budget.
- Increase the amount you’re willing to put down. In some cases you dont have to increase your offer but rather the amount you put down in earnest money. This shows the seller you are serious. This technique also helps you avoid the process of getting approved for a higher loan amount.
- Write a personal letter. Selling a home is often emotional. Appealing to a sellers love of the home with a genuine expression of how much you want the home or appreciate the history could earn you a nudge to the front of the line.
There are also times you should ignore your emotions or the urge to ‘win’ and let common sense prevail.
- Multiple cash offers above asking.
- Major structural or system repairs.
- If the house is already at the top of your budget and going higher will put you in financial jeopardy.
Did we already mention an experienced agent can help you navigate the process? That’s what we are here for. Working with an experienced real estate agent can help give you the edge you need in these stressful circumstances and ensure that you and your family get into the home of your dreams.