Improving Your Odds in a Bidding War

The market is heating up. The best homes, at the best buys, often receive multiple offers. Here are six tips to improve your chances of winning these sought after homes.

1. Learn the Sellers Priorities:

Often, the sellers have priorities greater that just cash. Allowing the seller to select the closing date, or even allowing the sellers to rent back after closing, could solve many problems for them.

2. Alleviate the Sellers Concerns:

Nothing is done until it is done, and any contract can fall through. Do everything you can to alleviate those concerns, by eliminating or reducing the contingencies.

• Finance Contingencies: Higher down payments, stronger lender letters, full loan approvals all strengthen your offer. If you are fully confident in your loan approval, you can even remove this contingency and make the earnest money non-refundable.

• Home Inspections: Write into the contract that you are accepting the home “As Is”. You would still want a home inspection done, and reserve the option to back out or renegotiate if significant defects are found. However you want to send a message to the seller that the inspection process will go very smooth. We often add a clause, “In the event the cumulative costs of any defects found is less than 1% of purchase price, the buyer will accept the home as is, without any remedy requests.”

3. Keep it Simple:

Sellers prefer simple offers. Do not add special contingencies or ask for extra items. Make the seller’s decision as simple and hassle free as possible. Offers that contain special requests can make the buyer appear difficult. No one wants a problem closing.

4. Be prepared to act fast:

Research the properties in your select areas as much as possible. This allows you to know the market, and respond with the right price quickly.

5. Escalation Clauses:

Add an escalation clause to your offer, which automatically increases your bid if other buyers come in.

6. Don’t be shy:

There isn’t always a lot of cash separating the top bid from the next closest contenders. For a seller with a strong emotional attachment to their home, an extra thousand dollars might mean less than passing their house along to the right buyer. Draft a letter describing why you fell in love with their house. Is it the perfect size for your growing family? Do you want to bring the backyard garden back to life? It just might give you the edge over the competition.

If you’re looking for advice tailored to your specific situation, Kyle Alfriend, of The Alfriend Group of Re/Max Achievers is happy to assist. Give him a call at (614) 395-1776 or Kyle@AlfriendGroup.com.

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