With low housing inventory, properties are receiving multiple offers left and right and sparking bidding wars among buyers. Here are some strategies on how to win your dream home:
1. Make sure you have a pre-approved financing before making an offer. Nowadays, you may be competing with all-cash buyers, having financing ready to go can help reassure the sellers that you will not back out of the transaction.
2. Make a competitive first offer. Always put your best foot forward when making an offer. Buyers often regret not making the right offer because they would have paid the price anyway. Also, make sure that your paperwork is complete and organized - this can help make a good impression on sellers.
3. Be available to your agent. Once you make an offer and the seller responds, you will have a limited time for accepting or countering their offer. If the seller needs a reply ASAP, then your agent may need to reach you quickly, and if you turn off your phone or miss your emails during a bidding situation, you may miss out the property.
4. Be flexible. While most sellers look for the highest bidder, but it is not always the case. Sometimes terms and conditions are as important. Flexibility can be a factor as well. If you know the seller needs a quick escrow because they just bought a new house, give it to them. If they just had a baby and need some extra time, have a longer closing time.
5. Be prepared to offer full price or sometimes offer even over full price of the property. If the seller requests that all offers submit their final and best offer then there are techniques, like an escalation clause, that may win the bidding war. Being strategic and aggressive with the initial offer and final offer may win you and your family your next home.