Dreamscape Realty LLC
Dreamscape Realty LLC

Tips for Winning A Bidding War

by Dreamscape Realty LLC 03/22/2020

Image by Amy Hirschi from Unsplash

Situations arise where prospective buyers find themselves in a bidding war with another buyer over the house they desire. Circumstances like this occur in a seller’s market where the demand for property is higher than the market can provide. It’s not uncommon to see multiple buyers vying over the same property in a seller’s market. In these cases, buyers often attempt to best their competitors by submitting ever-increasing offers. To help you win a bidding war, you need to stand out from other buyers. Consider the following methods that may boost your chances of securing the home you desire. 

Up your offer

In a bidding war, the person with the highest bid ends up with the home. If you want to increase your chances of becoming the owner of a house when you have competitors, offer more money for the home. You do not have to go overboard when increasing your offer; a few hundred dollars more may make a difference. In this case, follow the guidance of an agent experienced in negotiating bidding war situations.

Be ready to show your pre-approval

To give yourself a winning edge during a bidding war, show the seller you are a serious buyer and that you are prepared to see the transaction through to the end. Sellers pay more attention to buyers that come prepared and ready to finalize the contract. A pre-approval letter from your lender can give you that edge.

Waive your contingencies

A contingency is asking the seller to make a concession on your behalf. Examples include closing delay contingencies based on your current home selling or your receiving proceeds from probate of a will. Other contingencies might be asking the seller to repair a roof or broken window before the close of the agreement. If you decide to waive your contingencies during a bidding war, it speaks volumes to the seller of how badly you wish to proceed with the transaction. You want to be careful though when waiving contingencies so that you do not end up in a situation where you lose your earnest money – be sure it’s a risk worth taking. 

Pay in cash

Offering to make payments for the house in cash gives you a chance over other competitors. It’s not an option everyone can afford, but if you can pay cash rather than getting financing, put the offer on the table. If you are offering to pay cash for a property you are in a bidding war to purchase, it eliminates third parties, reduces closing time, and makes the seller understand that you are serious. 

Include an escalation clause

An escalation clause is an addendum included in your offer telling the buyer that you are willing to increase your purchase offer by a certain amount if another buyer is matching your offer. An escalation clause comes in handy when you are trying to win a closely fought bidding war. 

To win a bidding war over a home you like, you must be strategic and ready to go the extra mile. Make sure your real estate agent knows your maximum budget to negotiate for you appropriately.

About the Author
Author

Dreamscape Realty LLC

Dreamscape Realty

Whether buying or selling your South Florida home, you can trust that Dreamscape Realty will be there to assist you from consult to closing.

Contact Dreamscape Realty today for more information on how we can help you with all of your South Florida real estate needs!

Your South Florida Buyer's Representative

Dreamscape Realty will be your buyer's representative and will help make the process of purchasing a home a smooth and seamless experience. We'll help with all of your buying needs from consult to closing. As local experts, we'll also be able to help you find the perfect neighborhood, based on a list of your desired features and must-haves. We'll save you time by only showing you homes that meet your search criteria.

Once you've found a home you'd like to make your own, we'll look at market statistics to help determine a purchase offer. Then, our team will negotiate on your behalf to ensure you're receiving the most favorable terms. We have your best interests at heart and we work hard to make sure your needs and expectations are not only met, but far exceeded.

If you're ready to start house hunting, you can search South Florida real estate listings now. You can also refer to our Buyer's Guide for helpful tools and buying advice. To start working with a Dreamscape Realty agent right away, please contact us.

Sellers' Representation

Dreamscape Realty understands that selling your home on your own can be a daunting , emotional and overwhelming task. From marketing your home to open houses to private showings to contract contingencies and more, selling your home can also seem complicated. Trust Dreamscape Realty to take care of the entire process for you. We have extensive experience in marketing properties and will use our expertise to sell your home quickly and for top-dollar.

We'll start by completing a comparable market analysis to help determine a competitive price for your home. We can also assist with home staging to help draw potential buyers in. Dreamscape Realty will market your home through a variety of methods and online marketing, promising the utmost amount of exposure. We may even showcase your home as part of our site's Featured Listings.

When it's time to negotiate a purchase offer, we'll make sure to get the best price the current market conditions will allow. We'll carefully explain contract contingencies and the closing process while completing all paperwork with a fine-toothed comb. Essentially, we're here to represent you throughout the entire selling process, and to make sure that your real estate transaction is a positive and profitable experience.