How to win a home bidding war!

how to win a bidding war

Times are tough for buyers! 

When faced with stiff competition for the Jacksonville home you want to buy, be ready to come in strong and beat out the other buyers!

4 TIPS TO BECOMING THE WINNING BIDDER:

1

Do your research!

Try to find out a little more about the seller’s situation so you can tailor your offer accordingly. If the seller needs time to buy, offer a flexible closing date or lease back period. If the sale is probate or short sale, be prepared to wait.  If it’s a bank owned foreclosure, buy as-is and offer a quick closing date. Sometimes terms are just as (or even more important than price).

2

Be prepared!

Talk to a lender about your goals before you ever start shopping for homes. Have your pre-approval letter or proof of funds letter ready to go. In a market like this, you have to move very quickly as properties are gone in hours or days.  If you want to buy, don’t wait to write that offer! Also, an offer without a pre-approval letter won’t get you the time of day and in a multiple offer situation a seller won't wait for you to go talk to a lender before they make a decision.

If you are eligible for multiple financing options, you may want to use the best one available to you. From a seller standpoint, the most desirable offers are cash, followed by conventional loans, with government loans (FHA, VA, USDA) on the tail end.

3

Limit contingencies!

Be prepared to move quickly. Tighten up the dates on inspections and mortgage commitment, or waive them altogether.  Consider offering appraisal gap coverage in case your appraisal comes in low. The least desirable contingency is always a home selling contingency. If you have a home to sell, but don’t need to sell it to buy – you may want to consider not having this major contingency at all.

4

Offer your best price!

This should be obvious but is not always. Bidding wars don’t happen with properties that are overpriced. If you are facing competition for a property – it is likely priced well already. This is not the time to try to see what kind of deal you can get by making a low offer. You may not get a second chance to get it right – Be prepared to go in with your BEST AND HIGHEST!

Last Updated on July 1, 2021 by Minna Reid

Minna Reid

Minna Reid is a Broker Associate at Killebrew & Company Realty Inc, serving Jacksonville, Florida.

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