Like juggling Jello, pinning down a property in a tight market seems ever-elusive.
The good news is that to win a property bidding war, you don’t even need to be the highest bidder!
Amidst a buying flurry for scarce inventory and low interest rates, bidding wars seem as ubiquitous as the air you breathe.
Here are 16 ninja tactics you can use to win a property bidding war:
1. Understand the market. Peruse comparable property. This can prevent you from wildly overpaying.
2. Show your mortgage pre-approval.
3. Pick a buyer agent that’s courteous to the selling agent.
4. Speed kills. Make the first move.
5. Write a letter or send a video to the seller. Include personal reasons why you want the property.
6. Agree to use the seller’s preferred title agent or lender.
7. Offer more than the asking price. Note that this puts pressure on the appraisal.
8. In case of a low appraisal, state that you’ll pay out-of-pocket up to “x” amount.
9. Offer more earnest money than the customary 1 – 2%.
10. Add an escalation clause. This means that if you’re outbid, you automatically bid higher than the competing bid.
11. Ask what it takes to get your offer accepted same-day. So simple! But most overlook this.
12. Waive the inspection. This is risky. In fact, I’ve never done it. What I’ve done sometimes is offer to pay my inspector a bonus for performing on short notice.
13. Pay all-cash. If you can afford it, this speeds up the process for the seller. We love leverage at GRE; note that you might be able to do a cash-out refinance after closing.
14. Waive contingencies. Don’t be nitpicky.
15. Have your agent prepare multiple contracts with different purchase offers. This gives them options for staying on top of the bidding war.
16. Be flexible. Say that the seller has kids in school and they want to live there another 90 days. Agree to close early, but rent the house back to them until they vacate.
Why am I still writing this?
You’re 1,000% already putting these in your purchase contract to secure that investment property or a home for yourself.
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