It can be very frustrating if after months of looking for the perfect house, you find out there are six other offers that
are registered. Most people do not want to even entertain submitting their offer at this time. Sometimes couples decide to go head first and throw their bid in. There are many different strategies to going about winning a bidding war and every situation is different. When you are trying to win a bidding war you must do things that you normally wouldn’t do in purchasing a house. Some of them are risky and sometimes you could pay later even more because of your decisions. The problem is some people put in an offer that isn’t even close to asking and full of conditions and it only is driving up the prices. If you are going to get into a bidding war, here are some useful techniques that may help you win.
Strategies to winning a bidding war.
1. Remove clauses: Removing financing, home inspection clauses and other clauses are very risky but it is a sure way to entice the seller to accepting. The cleaner the offer, the better.
2. One strategy is to offer more than asking and remove conditions before they are accepting offers. This is a very frugal way to win but if you are considering not bidding this could work and give the owners something to think about.
3. Offer a large deposit. A large deposit indicates you have the funds to close the deal.
4. Closing Date: Give them the closing date they desire.
5. Know your highest amount and do not go higher. If you know you cannot spend more than a certain amount do not sway and get into trouble later trying to find thousands of dollars. (This is for your peace of mind)
In the end bidding wars are a lot like poker, you have to bring your best hand and you must watch out for bluffs. A good rule to use is to put yourself in their shoes.