[Blog #48]: How Do You Win A Bidding War?

In today's blog post we go over multiple offer scenarios and how to win a bidding war. You found a really nice house that you fell in love with but found out that this property is listed below market value and set for multiples. The property is getting multiple offers on it and really want to win the other offers over, so how do you win a bidding war in this situation?

Know Your Budget

Regardless of market conditions, a pre-approval should be your number 1 step before going out and viewing homes. You want to make sure that you are seeing homes within your budget range of affordability. The pre-approval will inform you on how much you are able to spend and guarantees your mortgage interest rate for up to 120 days. Having this mortgage pre-approval in place will sweeten up your offer in a bidding war situation because you won't need to add a financing condition.

Aside from knowing your budget, make sure you know the actual worth of this home. Get your Realtor to pull the comparable sales data in the area for you or reach out to us to pull it out for you so you know what your offer should look like or determine whether it even makes sense to put an offer or not.

Reduce Your Offer Conditions

There are a few things a seller looks at when comparing offers, it's not all about the price but offer conditions can be a big part in a sellers decision making. A clean offer is more likely to win than an offer with the most amount of conditions in there.

Know What You Are Buying

Although its recommended to reduce the amount of conditions you have in your offer, you must make sure you have a condition in there for home inspection. You must know what you are buying and don't want to purchase into a house that has many issues from inside out.

For the next time you are home buying, keep these in mind and of course your trusted advisors here at The Zadegan Group are more than happy to be of any assistance!