How to Win a Bidding War

Buyers placing offers on homes can find themselves in highly competitive situations very quickly if the house is attractive. Multiple offers are not uncommon in this market. There is little that a buyer can do against a cash offer, unless the buyer can offer more cash, but there are ways to win a bidding war against others seeking loans to buy.

Be Further Along in the Process

If you’re closer to being approved for a loan than the other buyers in the bidding war, there is a good chance you’ll win out. Start the home loan process early into the time you spend looking for the right home for you. Shop lenders during this time and get pre-approval wherever possible. Pre-approval is very strong in a bidding war, and is a must if there are multiple buyers.

Raise More in Cash

If you have a higher cash downpayment, it’s likely the seller will want to sell the house to you over another buyer trying to get a higher loan amount. Sellers are also worried about low appraisals, so keeping cash on hand to cover the difference puts you in a better position to buy. The flipside is that the buyer should be sure a house is the right option for them if they decide to come in with the difference.

Speed Up the Process

If the buyer offers to expedite the selling process, say with a clause that states the deal will close in 20 days, this gives the seller reassurance the buyer is serious. Failing everything else, offering a faster closing time with tighter windows for inspection can save the deal.

Bio: Kuba Jewgieniew understands how to sell homes. As CEO of Realty ONE Group, Kuba is committed to equipping the agents of Realty ONE Group with the technology and support they need.