You have been looking around at different homes on the market and have finally found it - the home of your dreams. The problem is that another couple also have their eyes on the same home and seem to want it as much as you do. The bidding war begins for the real estate and you don't know what to do next. Here are a few tips to help you get through it.
Submit a clean offer
Although it may seem surprising, it's not always the price that determines the winner in a bidding war. A clean offer will sometimes beat out a higher offer. A clean offer refers to the agreement terms. If you have a preapproval for mortgage or can pay for the house with cash, for example, this would be part of a clean offer. Other things that can keep an offer clean include having the closing date work with the seller's, the purchase is not contingent upon you selling your home, you don't ask for anything extra like unusual repairs or appliances thrown into the offer etc. A clean offer can often be very appealing to the seller even if you are offering less money than another that has come in.
Let the seller know that you may be flexible on such things as purchasing the home as is or working with a new closing date. If the seller has to sell his home quickly for one reason or another you may win out on the bidding war just by moving the closing date forward to accommodate his needs.
A big deposit means business
Don't hold back on the deposit that you're willing to put down on the property. It shows that you are serious and really want the home. If you end up getting the property it will be put towards your down payment and if you don't win out on the bidding war you'll get the money back anyway. It's a win-win situation that just shows the seller that you are extremely interested in that house and willing to step forward and show it by offering a large deposit.
It's not all about business
Take a step back from the logical side of purchasing a home and put some emotion into it. Take a few minutes to write down what the house would actually mean to you so that the seller can understand why you really want their home so badly. In most cases the seller will have a very deep emotional attachment to their home and it will mean a lot to them to know that it is going to people that will love it as well. In many cases you can touch the heart of the seller as long as you are being sincere with your words.
Sometimes it's not all about the money and many bidding wars are won by people that bid less but put an extra effort into their offer in another way that counts.
Leave a Comment
Finding the right place to workout, enjoy time with the family and get the kids involved in activities isn't always easy. Of course, the YMCA provides a great w...Read More
A recent survey polled Canadians from one end of the country to the other to find out their thoughts on recreational property. People that either own or have th...Read More