How to Win the Bidding War on Your Next House

A bidding war on a house can be an intimidating process, especially if you’re unfamiliar with how it works. Bidding wars are becoming increasingly common in the real estate market, so it’s important to understand the ins and outs of this process in order to make sure you don’t miss out on your dream home. Here’s what you need to know about bidding wars.

What is a Bidding War?

A bidding war occurs when two or more buyers are vying for the same property. In most cases, the price will start off at a set amount and buyers will bid against each other until one offer is accepted. This can be a stressful situation for potential buyers as they try to determine how high they should bid and when they should walk away from the process. It’s important that buyers remain level-headed and remember that no matter how competitive the bidding war gets, there will always be another property available down the line if it’s not meant to be.

How Can You Win?

The key to winning a bidding war is preparation. Before entering into any negotiations, potential buyers should do their research on the area, school district, and property itself so that they know exactly what they’re getting themselves into before making any offers or counteroffers. Additionally, it’s important to consult with an experienced real estate agent who can provide advice throughout the entire process and help ensure you make informed decisions without overpaying for your dream home.

Other Tips for Winning a Bidding War

In addition to doing your research ahead of time and working with an experienced real estate agent, there are several other tips that can help increase your chances of winning a bidding war:  Make sure all contingencies are included in your offer; Offer seller concessions; Include a personal letter with your offer; and Move quickly by submitting your highest and best offer first (and don’t worry about being too generous). By following these tips, you’ll have a better chance of success when competing against other bidders in a competitive market.

Know Your Limits

Before beginning your house hunt, it’s important to know exactly what you can and cannot afford. This will help narrow down your search and prevent you from wasting time on properties that are out of budget. Knowing your limits also helps during the bidding process, as you won’t overbid or get caught up in an emotional battle with another buyer.

Be Pre-Approved for Financing

The pre-approval process verifies that you have been approved for financing and have been granted a certain amount of mortgage money by a lender. This shows sellers that you’re serious about buying their property and can actually follow through with the purchase. Additionally, having pre-approval makes the escrow process shorter, meaning closing is faster and smoother since most of the paperwork has already been taken care of. Pre-approvals also give you an advantage over other buyers who may not be able to provide proof of funds like you can.

Make an Attractive Offer

Being competitive is key when it comes to winning a bidding war. To make sure your offer stands out from the rest, consider adding contingencies such as inspection periods or home warranties as these could make all the difference for sellers who want peace of mind knowing their property is safe after they move out. You might also consider waiving some contingencies or offering more money upfront—just make sure you don’t overextend yourself financially!

Lastly, don’t be afraid to attach a personal letter along with your offer that outlines why this particular property is so great for you and your family and why it would mean so much for them to accept it. Personal touches such as these could give your offer an edge over others who haven’t taken this extra step!

Home Loans from Six Pillar Lending 

Winning a bidding war can seem daunting but it’s definitely possible if you play your cards right! By knowing exactly what you can afford ahead of time, getting pre-approved for financing, and making an attractive offer with added contingencies such as inspection periods and home warranties, you’ll have increased your chances of being chosen as the winning bidder! One of the biggest things you can do to give yourself a leg up in a bidding war is to get pre-approved for financing. For information about home loans from Six Pillar Lending, contact us today!