Win the bidding war

Hello Friends,

With the lowest inventory of homes for sale in history, historically low interest rates and an abundance of buyers we are seeing bidding on too few homes. Here are some helpful tips to be more competitive buyer if you find yourself in a multiple offer situation.
Of course, many times the highest bidder or cash wins. However, this may not always be the case. Even a buyer getting financing may find with the right terms and conditions it could make the difference in to win the bidding war.

 

Larry and Connie’s
Buyer tips to win the “Bidding War”

win the bidding war copy
connie@windermere.com
   lwpeterson@windermere.com

 

 

1. Get the Right Buyer’s Agent
Full time experience Realtor with a proven record in the industry. .  A top buyer’s agent will know what questions to ask a sellers agent in order to structure the purchase offer to give the buyer an advantage.  The sellers listing agent will know the offer will be clean and strong, they trust the other side and know there is a less likely chance of complications to close on the property

2. Pre-inspection
Buyers are doing a pre-inspection of the home in advance of the offer. This will allow them to waive the inspection contingency when making an offer. 

The reason that is more attractive, by having an inspection contingency a buyer may terminate the agreement at any time prior to the inspection contingency deadline.  

3. Waive the inspection
Some buyers waive the inspection contingency all together, however we recommend you do a home inspection…to many surprises could come up after.

4. Pay additional down payment if it does not appraise
If you are writing an offer over the list price, you could included an addendum that identifies how much additional down payment you will put down if the home does not appraise This shows the seller you are committed and gives the seller comfort and security with your offer over others.

5. Waive the appraisal
We are seeing buyers who are using financing contingency waive the appraisal contingency.  That would mean if you wrote an offer above full price and the property does not appraise at the purchase price, then the buyer would pay the difference between the appraisal and the purchase price at closing

6. Solid financing
You will be a much stronger buyer if you have been fully underwritten and approved for a loan.  This is much different than getting per qualified or pre-approved thought the direct underwriting system. Talk to your lender or if you need a lender referral, give us a call

7. Cash is king
Paying all cash is always great for a seller as there is no financing or appraisal contingency. Or lager down payment, (20% or more) tends to appear stronger than a much lower down payment such as 0-5% down.

8. Waive financing
Even though the buyers are getting financing, they waive their financing contingency all together.  They feel they are super strong buyers and believe the loan will go through.  If for whatever reason, you could not get financing and waived your financing contingency then you would lose your earnest money.

9. Earnest money
A large earnest money is more favorable to the seller and shows your commitment.

Some buyers many are writing their earnest money and releasing it to be a nonrefundable deposit or writing a check directly to the seller and upon mutual acceptance instruct the closing agent to release it to the seller.  This can show the seller you super serious.

10.  Buyer closing costs
You will be more competitive if you pay your own closing costs rather than asking the seller to pay for them which would reduce the amount of money they will receive at closing.

11. Offer your best price
Money talks, too, pay the highest price. Or you can add an escalation clause to your offer that increases your bid by a certain amount above other offers. Just make sure you set a limit on how high your offer will go.

12. Allow the seller to stay in the home after closing

If the sellers have a home already purchased, you don’t have to worry about it too much. But many times moving dates don’t line up perfectly, so you’ll need to find out how long they need after closing to get out.  Keep in mind they will now be a renter even if you allow them to stay free of charge

 

Connie Redden – Peterson & Larry Peterson
Windermere Real Estate/JS
Direct: (425) 750-2393 or (425) 418-0951
connie@windermere.com  lwpeterson@windermere.com