How to Win a Bidding War

In todays real estate climate it has become essential that you have the needed tools to negotiate quickly, know how to win a bidding war, AND do it all without leaving any money on the table.

10 TIPS TO WIN A BIDDING WAR

1.     HIRE AN EXPERIENCED AGENT!  Winning a bidding war REQUIRES an agent that knows how to negotiate quickly without leaving room for error and costing you the home of your dreams.

2.     SELLERS COST!  Have your buyer cover a portion of the sellers cost for taxes or title insurance. 

3.     FREE OCCUPANCY!  In a competitive situation, buyers should consider offering 45 or 60 days of occupancy for free post-closing.

4.     CONSIDER A LETTER TO THE SELLER!  You will need to have this approved by the broker first.  Important to note- keep the letter strictly about the house and nothing personal.

5.     UNDERWRITTEN PREAPPROVAL!  This will help prevent potential surprises and keep days until closing shortened.

6.     COVER UTILITIES! Cover the seller’s utilities during their occupancy and put that money in escrow.

7.     SCHEDULE POTENTIAL INSPECTION!  Get a tentative inspection scheduled.  This shows the seller/listing agent you’re ready to go with scheduled inspection and mean business.  

8.     INSPECTION COSTS!  Let the seller/listing agent know that the inspection is being used for information purposes only and you won’t be asking for concessions at cost.  This also protects the buyer as well without waving the inspection and still being protected by inspection contingency.  

9.     APPRAISAL GAPS!  Allow the seller to keep all additional money in an appraisal gap. 

10.   WHAT COSTS CAN YOU COVER!  What costs might a buyer cover for a homeowner?  Does the seller need to store items to move? Consider covering one month of storage fees.  Are they currently paying utilities for more than one home?  Consider covering one month for the home you’re purchasing to sweeten the offer.  Be creative with your offers!