No one wants to be in a bidding war. However, the reality is, in virtually every market, you will wind up competing with at least one other offer. Today, we’ll go over a few things you can do to make your offer stand out and win the bidding war.
First, you need to realize that the listing agent becomes incredibly important during a bidding war. The listing agent will be buried in paperwork, and to be candid, they don’t care what deal they make. They ultimately want to make a deal.
When you submit your offer, consider writing a cover letter to accompany it. Introduce yourself, and maybe include a family picture. A picture of your kids with their golden retriever will make your offer sparkle. In the cover letter, tell them how beautiful the home is. Let them know that this is not just a matter of dollars and cents.
Sellers do want to make a profit, but they’ve been in this home for decades and raised their own families. In a way, the buyer is carrying on their legacy within the neighborhood, so writing a letter about what the home means to you can really draw the seller in.
Also, don’t forget to have your agent work for you. You could just send out an email to submit your offer, but it’s likely to get buried with the others. Instead, have your agent hand deliver your paper along with a dozen donuts. The listing agent can enjoy the donuts while they read your offer. This strategy really does work!
To add appeal to your offer, raise your earnest money. The earnest deposit is usually 1% of the sales price that ultimately goes towards your down payment. You can double your earnest money at no penalty to you. This shows the seller you’re serious about their property.
Inspections are part of the buying process. If a competing offer is asking for seven days to do an inspection, and you know you can get yours done in three, only ask for three days. Offering to do an inspection so quickly shows the seller you’re committed.
That is how you win a bidding war, by setting yourself apart from the competition. If you have any further questions, please don’t hesitate to reach out to us. We would be happy to help you!