Real estate markets around the country are continuing to see a low amount of inventory. This can lead to a hot seller’s market.
That’s frustrating news as a buyer. If you’re trying to buy a house right now, you have a lot of competition. This means you have a good chance of ending up in a bidding war when you find a house that you are ready to buy.
The most obvious way to win a bidding war is to offer more money than any of the other buyers. However, this is not the only way to win a bidding war.
If you find yourself in a bidding war and don’t want to increase or can’t afford to increase price of your offer, try one of these strategies.
Look for ways to do something meaningful for the seller. One example of this would be offering to pay for the movers. It’s an annoying task for most sellers that are looking to sell their house and it can also be costly. However, it’s a one time fee that you pay and then you’re done, and it’s a gesture that many sellers appreciate.
Some buyers have bought gifts for the family members of the family selling the house. This could be toys for the children, and there’s even one story of someone buying a trampoline.
A type of gesture like this doesn’t have to be expensive. Even something as simple as making homemade cookies or an apple pie can help your offer – and you as the buyer – stand out from the competition.
If you have an opportunity to meet the buyer before they’ve made a decision, make sure to compliment the house and make a good impression on them.
Reduce the number of contingencies in your offer
If you want your offer to stand out from the crowd, you need to make it as appealing as possible. Even if you can’t come in with the highest price, you can still make your offer look better by removing the number of contingencies that are included.
One of these contingencies is the mortgage contingency. If you know that you will have no problem getting a mortgage, removing the contingency lets the seller know that you are a sure thing.
Appeal to the heart of the seller
When you submit your offer, include a personalized letter to the seller. You can explain to them how excited you are about the house, compliment the house, and tell them all the things that you would look forward to doing if the house becomes yours.
Buyers want to look for ways to connect with the seller. For example, consider including a picture of your family in with the letter. This helps to put a face and name together, which makes for a much more personalized experience.
While price is important in an offer, it isn’t the only thing that sellers consider in a bidding war. Therefore, you should look for creative ways to stand out from the crowd. When buyers find themselves in a bidding war, keep in mind that your offer doesn’t have to be the highest to be the best deal for the seller.