Creative Ways for Buyers to Handle a Bidding War
Not every home for sale will receive multiple offers. But when that happens it can be nerve-wracking for all involved.
Keeping calm and not being forced into making concessions is the best way to protect your interests and future finances.
The best offer isn’t necessarily the highest dollar offer. Other considerations are any conditions on the offer, financing and closing dates, to name just a few.
We have heard of offers being successful because of the “value added” components of the offer. This has been as creative as adding a pair of hockey tickets to the offer, giving the sellers a lifetime worth of free pizza, etc.
Firm offers without any conditions are very hard for sellers to refuse but they aren’t always possible with most buyers. There is usually the buying and selling of two properties to handle before the deal closes, as well as a myriad number of other small details to be taken care of.
If your financing is pre-approved then making financing a condition isn’t required.
A home inspection should rarely be removed from the list of conditions but maybe you can speed up the timing of the inspection to happen before being forced to up your offer or rely more on a pre-inspection report and segment any concerns about major appliances and systems (furnace, air conditioning).
Being flexible with the closing date is always attractive to sellers. They may need time on their side to finalize their own next home or want to speed things up depending on what is next for them. If you can arrange bridge financing, or somewhere to stay for a short time between closings, that flexibility may just win you your dream home.Look carefully at the conditions you have placed on your offer and discuss with me which can be modified or eliminated.Here are a few examples of how people have won a bidding war:
This article is copyright Realty Point™ Inc and Robert Lee and may not be reproduced in any format without prior written permission.