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Three Techniques to Give Your Bid An Edge Over The Competition

by Ann Fotenakes 09/10/2018

In a competitive housing market--like the one we have today--sellers are fielding numerous offers, especially in desirable urban and suburban hubs.

 

If you’re hoping to buy your first or second home, it can be tough to make offer after offer with no success.

However, there are some things you can do to help ensure your time house hunting is well-spent and to increase your chances of getting your offer accepted.

In today’s post, I’m going to give you a few tips on how to win a bidding war on your dream home.

All-cash offer

The most effective way to ensure that your offer is accepted is to make it in all cash. Cash offers drastically simplify the real estate transaction process, making things easier on the seller.

Most buyers, especially first-time buyers, won’t be able to make an all-cash offer on a home. However, people who are downsizing after their children moved out or are buying a retirement home may find themselves in the ideal financial situation to be able to leverage a cash offer.

If that sounds like you, consider a cash offer as part of your bidding strategy.

Waive the financing contingency

If you’re new to real estate contracts, you might be wondering what a contingency is. Essentially, a contingency is an action that needs to be completed before the contract becomes valid and the sale becomes final.

There are a number of different contingencies that can be found in a real estate contract. However, the most popular are for inspections, appraisals, and financing.

If you’re planning on taking out a mortgage to purchase the home, a financing contingency protects you in case you aren’t able to secure the mortgage in time. In other words, you’re not on the hook for a home you can’t pay for.

In some special situations, buyers might decide to waive the financing contingency, signaling to the sellers that there won’t be any hang-ups or delays from the buyer regarding financing the home.

Waiving this contingency comes with risks (namely, being responsible for coming up with the money to pay for the home). However, there are ways to safely waive a contingency.

The most common approach is to get a fully pre-approved letter from a lender. The important distinction here is that your mortgage needs to be pre-approved and underwritten (not just pre-qualified), otherwise you again risk getting denied the mortgage in the last moments before buying your home.

Crafting a personal letter

Sometimes all it takes to win a bidding war is to be the seller’s favorite candidate. Take the time to write them a personalized letter. Explain what you love about their home and why it’s perfect for your family.

Avoid talking about big changes you’ll make. Remember that they probably put a lot of time and money into the home, making it exactly the way they want it, and won’t appreciate you making huge plans to undo their work as soon as they’re out the door.

 

Using one, or a combination of, these three techniques, you’ll be able to give yourself an edge over the competition and increase your chances of getting your offer accepted.

About the Author

Author
Ann Fotenakes

Personal experience and education have made me a great relocation specialist as well.

I understand what is important and necessary to make your move as stress-free and timely as possible. I am active in my community and can provide information not only on our housing market, but on schools, youth athletics and community activities.

PERSONAL
I have been a Flushing resident for over 25 years, and I have made it my job to find homes here for others as well as helping people who wish to sell homes in the area.

I graduated from Mid Michigan with a L.P.N. degree.

As a full-time real estate professional since 1979 I have helped many clients with the sale and purchase of their homes.

Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional who understands the market and is positioned to stay ahead of the game. With knowledge, experience and a commitment to excellence, I will help you stay ahead of the game.

CERTIFICATIONS:

Broker/Owner
ABR - Accredited Buyer's Representative
Member of Flint Area Association of Realtors (FAAR)
Member of the Flint Chamber of Commerce
Sales and Marketing
L.P.N.