When searching for a home, it’s easy to fall in love. Whenever that perfect home with the perfect location is spotted, it’s time to act fast and secure it for years to come.
However, there’s a chance that other people are falling in love with the same house. That is when a seller might receive multiple bids on the same home, putting them in a situation where only one buyer will go home happy.
Jacques Poujade, a managing partner at Lend Plus, has seen this all unfold with many people throughout his years. He believes that if people have the right strategy, they can increase their chances of winning a bidding war for that perfect house. He recently shared a few of the tips he’s personally seen lead to success with us.
Outbid everyone else with the highest price
This is far and away from the easiest way to win a bidding war, but it does, of course, come at a price. Most sellers don’t care too much about who they sell to, as long as they get great value out of it. It’s important to do a good amount of research so that the highest bid isn’t a crazy amount, but still high enough to convince.
Every market is different, but some of the more competitive markets sometimes receive bids that are well over the asking price. It’s usually a case of understanding the market and what type of perceived deal the asking price is to make a healthy bid. Figure out a max amount and start outbidding everyone else. In this case, finding a real estate mentor is beneficial in order to help you make the right choices.
One of the best ways to have success in a bidding war without necessarily spending a ton of money over the asking price is to come with cash. There are a lot of advantages to using cash, both from a buyer‘s and seller’s perspective.
As a buyer, it means a smaller loan, or no loan at all. For a seller, it speeds up the process, and it shows that a bid is 100% serious. There are also a lot of different fees that can be avoided using this option as well.
Make it personal
It’s not used nearly as much these days as a tactic, but a personal letter can go a long way towards winning a bidding war for a home. Some people are very sentimental about their home, and they want to make sure it goes to someone who will love it as much as they did. A simple letter can ultimately win the keys.
Most people in the letter try to explain their current situation, why they fell in love with the home, why they think the neighborhood is perfect, and more. It might be tough to write a letter like this, but if the house is worth it, the words should come rather easily.
During an open house, take the opportunity to meet the people selling the house if possible. Developing a relationship builds trust, and that could push a bid ahead of someone else, even if they aren’t offering the most.
I’m a single mother of 2 living in Utah writing about startups, business, marketing, entrepreneurship, and health. I also write for Inc, Score, Manta, and Newsblaze