In today’s competitive real estate market navigating multiple offers can be challenging, but with the right strategies, you can increase your chances of success.
In this article, we’ll explore five proven tips on how to win a bidding war in 2023.
#1: Know the Local Market and Pricing
Before you start making offers, it’s crucial to have a solid understanding of the local market and pricing.
Work closely with your realtor to get insights on home prices in the area and understand the difference between list prices, sale prices, and sold prices.
Remember that list prices can be misleading, so it’s essential to look beyond them and have a clear understanding of the actual value of the property.
#2: Choose a Realtor with a Solid Reputation
The importance of selecting a reputable realtor cannot be overstated in a competitive bidding war.
Imagine being a seller’s agent with 18 offers in hand.
Who would you prioritize?
A realtor with a proven track record of making everyone happy or other offers from unknown sources?
Working with a realtor who knows the market inside out and has a solid reputation is the best advice I can give.
A well-respected realtor can help you stand out from the competition and increase your chances of success in a bidding war.
#3: Craft a Stand-Out Offer
Crafting an offer that stands out from the competition is crucial.
It’s recommended to retain your appraisal contingency, so you can confidently make a competitive offer without the risk of overpaying.
Ensure that your offer is presented professionally and correctly to the seller’s agent.
This includes submitting all the required documents, such as pre-approval letters and earnest money deposits, in a timely manner.
Avoid offering a round number, as it may not seem as genuine or strategic.
Instead, offer a specific amount to show that you have put thought into your bid.
#4: Demonstrate Seriousness and Commitment
Showing your seriousness and commitment to the purchase can give you an edge in a bidding war.
Max out your earnest money deposit to demonstrate your financial capability and motivation to close the deal.
A higher earnest money deposit can signal to the seller that you are a serious buyer who is committed to completing the transaction.
#5: Be Prepared and Act Quickly
In a competitive real estate market, time is of the essence.
Stay updated with new listings and be ready to make an offer as soon as you find a property that meets your criteria.
Work closely with your realtor to streamline the process and be responsive to requests for additional information or documentation from the seller’s agent.
Time To Start Winning Your Bidding Wars
Winning a bidding war in 2023 requires careful preparation, strategic tactics, and quick action.
By following these five proven tips from our real estate experts, you can increase your chances of securing your dream home in a competitive environment.
Remember to know the local market and pricing, choose a reputable realtor, craft a stand-out offer by retaining your appraisal contingency and avoiding round numbers, demonstrate seriousness and commitment, and be prepared and act quickly.
With the right strategies in place, you can come out on top in a real estate bidding war.
Click here to listen to the full episode.