How Do You Win A Bidding War?
How do you win a house you want to buy when there are multiple Buyers creating a bidding war?
In this video, I explain the terminology and processes that will improve your chances of winning your dream home.
Every home buying process is a little different, but these are the key considerations in creating the winning offer a Seller can't say No to.
1. Financing must be strong and include documentation showing your proof of funds, and if possible, have no financing or appraisal contingencies. It is important to know not all cash offers are really paid in cash at closing.
2. If there are multiple bids, consider a pre-inspection, buying without one if you are going to do a lot of construction or writing an inspection without request for repairs.
3. Find out what the Seller wants in the perfect offer, from the timing needed to close, to a possible rent back, to their preferred title company. Don't write anything that the Seller may not want.
4. Do not get into trouble with a Fair Housing Violation by writing a love letter to the Sellers.
5. Don't add extras into the offer creating more reasons for a Seller to not pick you like a home sale contingency, furniture requests or special requests that could cause the Seller to pause.
6. One of the easiest things to do to stand out is to have a large escrow deposit that will be applied to the sales price at closing. You are not out any more money, but it demonstrates you are a strong buyer and a good choice to purchase their asset.
7. Write a strong escalation clause. Go as high as you are willing to go and know that if the house sells for just over your max, you are okay with losing.
In the end, the perfect offer has the highest price and the cleanest terms. Just because you have one or the other doesn't mean you'll win, so you should strive to write an offer with a price the Seller is willing to accept and with the terms that would make them pick you as the winner.
Every situation is different. I am happy to help guide you through my local market in Washington, DC, Maryland in Virginia should you be interested in buying or selling real estate.
Daryl Judy Washington Fine Properties