Bidding wars in extremely competitive real estate markets can be overwhelming to the newbies and downright ugly at times. Think along the lines of finding your long-sought dream home only to be outbid by another buyer. In this post, we hope to provide a detailed guide on how to bid and win on a house with multiple offers.
Continue to read to take a closer look at how to successfully bid and win a house with plenty of offers.
1. Contact an Experienced Real Estate Agent
It doesn’t have to be a stressful time when it comes to buying a home as a first-time homeowner. A qualified real estate agent who knows and understands the current market in your city can not only ease your headaches but also save you money and time. The agent will not only handle the negotiation process but also recommend reputable lenders with favorable interest rates.
2. Pre-Write the Loan
A way to handle multiple offers on a house is to show the seller and agent you are completely serious about buying the home. Many sellers fear the deal falling through the cracks due to mortgage loan denials. It is wise to request your preferred lender to pre-write your loan before you make an offer. Pre-approval will indicate you have sufficient funding ready, improving your negotiating power. You might also enjoy a faster closing process, with the possibility of waving your financial contingency.
3. Present an Offer with no Contingencies
If you are wondering how to bid and win on a house with multiple offers, consider waiving the buyer’s contingency clauses. Contingency offers effectively prevent unwanted surprises after buying a house, such as expected repairs and title defects. The real estate market has not been easy sailing in the last few years, and you can sweeten your offer by removing any contingencies in your contract. This strategy, of course, is not without its risks. However, it is worth discussing the options available with your real estate agent before deciding to wave your financing contingency or inspection contingency.
4. Offer a Larger Down Payment
Down payments are a strong signal of the buyer’s financial position in the seller’s eyes. A larger down payment might indicate a stronger commitment to completing the deal as the seller analyzes the different bids. More money in the bank shows the seller you are less likely to walk away after low appraisal values or higher-than-expected repair costs.
5. Waive the Appraisal Contingency
Appraisal discrepancies are one of the leading causes of house sales falling through the cracks. Appraisers typically value a home below the contract value, especially if the prices skyrocket. A lower figure can cause sellers to walk out of the deal. The offer can be made desirable by offering to cater to a part of the appraisal gap. This might mean paying higher than the actual value of the home. Contributing funds to cover the discrepancies guarantees the seller that they don’t need to drop the price that has been set after the home inspection.
6. Present an All-Cash Offer
The easiest answer when considering how to get an offer accepted for a house with several bids is to provide an upfront cash offer. An all-cash home payment means you have the money to see the deal through, while also translating a clean offer without contingencies from third parties such as mortgage lenders. Concerns with financing can be eliminated while facilitating a faster closing process.
7. Present Yourself as Flexible
You can always provide a little wiggle room for the seller’s demands. If you can cover your closing costs, offer to do it. Sellers each have different needs, and positioning yourself to address them quickly can make it easier for you to win over other buyers to the purchase. Ensure your real estate agent maintains timely communication, which will allow you to respond to the seller quickly. Showing intent to complete the transaction fast and with minimal contingencies can entice the seller to accept your offer.
The Bottom Line
As a buyer, rejection of your offers for various homes in the market can be demoralizing. You might need to find ways to make your bid irresistible to the sellers. The tips above can help you show that you are willing to go the extra mile to own the property. Avoid getting lost in the bidding war, spending over your budget, or buying the home out of buyer’s remorse. Coastal Realty Group can provide the agents needed to guide you in the direction of finding your dream home on the Forgotten Coast of Florida with ease, increasing your chances of bagging the deal.