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How can I be a more competitive buyer in a multiple offer situation?

Published 1:07 pm Friday, June 10, 2016

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. Here are 10 buyer tips to win the “Bidding War”.

1. Get the Right Buyer’s Agent. Work with a Full time experienced Realtor with a proven record. A top buyer’s agent will know what questions to ask a seller’s agent in order to structure the purchase offer to give the buyer an advantage.

2. Pre-inspection. This allows buyers to waive the inspection contingency when making an offer. It’s attractive to sellers because when there’s an inspection contingency in place, the buyer can 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 always recommend you do a home inspection.

4. Waive the appraisal. This means that if the property does not appraise at the purchase price, the buyer needs to pay the difference between the appraisal and the purchase price at closing. Make sure you can afford to pay the difference in the event that the house appraises at less than the purchase price.

5. Solid financing. You will be a much stronger buyer if you have been fully underwritten and approved for a loan. This is stronger than getting pre-qualified or pre-approved thought the direct underwriting system.

6. Cash is king. Paying all cash is always great for a seller as there is no financing or appraisal contingency. Next to this, a larger down payment, (20% or more) always looks stronger than a smaller down payment.

7. Waive financing. Even when getting financing, some buyers are waiving their financing contingency all together. If for whatever reason, you could not get financing and waived your financing contingency then you would lose your earnest money.

8. Earnest money. A large earnest money amount is always more favorable. Some buyers are writing their earnest money check directly to the seller and upon mutual acceptance instruct the closing agent to release it to the seller as a nonrefundable deposit toward the purchase.

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

10. Offer your best price. Money talks! Pay the highest price you are comfortable paying. Or include an escalation clause with your offer that increases your bid by a certain amount above other offers.

Windermere Real Estate/JS

Only sellers love multiple-offer situations. But with these tips, you can rise above the pack and help put yourself in the best position to win the bidding war and get your dream house. For more info go to: http://connie.withwre.com/winning-the-bidding-war/ Connie Redden 425.750.2393