Coming up against a bidding war is never ideal. It usually means a higher price point, and many times, it means losing the home altogether.
Fortunately, if you find yourself duking it out with other buyers, all hope isn’t lost. There are actually quite a few strategies that can help you stand out and come out on top.
Want to make sure your bid’s the one sellers go with? Here are six hacks that can help:
Include your preapproval.
Getting preapproved (and including that preapproval in your offer) is the No. 1 thing you can do to stand out with sellers. For one, it shows that you’re a safe bet. A lender has evaluated your financial details, and they’ve deemed you a good candidate for a mortgage loan. This reduces the risk for the seller and makes it less likely you’ll back out of the deal.
Additionally, preapproval also speaks to how serious you are about the home purchase. You put in the extra work, and you’ve shown you’re ready to do what it takes to buy that dream home.
Be flexible with your closing date.
While it might be nice to close on that loan and move onto the property in the next three weeks, that might not be ideal for the seller. They might have a work trip planned during that time, or maybe they still need to find a new home themselves.
Whatever the reason, it’s nice to give sellers a little flexibility on your closing date. Put a tentative date in your offer, but make sure you tell the listing agent that you’re open to moving it if the seller needs more time. Offering a lease-back can also help here (it allows the seller to rent the home back from you for a certain amount of time after you’ve closed on the property).
Make a big earnest deposit.
Earnest money deposits are an act of good faith. It’s money the seller gets to keep if you back out of the deal, and the more you put down, the less risk you are to a seller.
Now, don’t go crazy here. You don’t want to be out $10,000 if something forces you to cancel the transaction, but you should offer an amount that will get you noticed and speak to your level of interest in the home.
Write a heartfelt letter.
Make it personal by writing the sellers a letter and including it with your offer. Tell them what you like about the home, your plans for it, and what it would mean to you and your family Don’t be afraid to call out individual elements of the home that you love (they probably put a lot of work into the property and will appreciate the praise!)
If you really love a home, don’t be No. 10 to the table. The faster you act, the more it shows you’re interested in the home. (It also means you’re one of the first offers the seller sees, too).
If you can, try to make an offer the same day if you like a property. If that’s not possible, at least let the listing agent know that you’ll likely be submitting one the next day. This gives the sellers a heads up that you liked the property and they should hold off on any decisions until you submit your bid.
Finally, don’t submit a lowball offer. Although they may be moving, the seller likely has quite an attachment to the house, and offering too little from the property will probably offend them. If you think the home is worth less than the seller is asking, work with your real estate agent to determine an appropriate (and respectful) price to offer. It should be in line with what other properties in the neighborhood are selling for (that way it’s justifiable on paper).
Facing Tough Competition?
A preapproval is the best way to stand out when you’re up against other buyers. Want to make sure you’re ready to face the competition? Get in touch with Premier Nationwide Lending today to get preapproved for your mortgage loan.
Premier Nationwide Lending is an Equal Housing Opportunity lender. Sponsored by NTFN, Inc. 6201 West Plano Parkway, Suite 100, Plano, TX 75093 | NTFN NMLS 75333.