It happens. Desirable home. Desirable neighbourhood. Multiple buyers with offers. It can be a recipe for a bidding war.
So, what do you do if you have your heart set on a home that other people want too?
- Show them the cash – According to a report by Redfin, cash offers were 4 times more likely to win a bidding war. Of course, when considering making a cash offer don’t drain your emergency fund, and weigh factors such as if there is a penalty to pay if you withdraw from a certain account.
- Get pre-approved – Next to cash, getting pre-approved before you shop is the next best option. This way you know what you can afford, and it ups your chances of winning a bidding war because the seller knows you are serious and can close faster.
- Offer over asking – In doing so, make sure you know the highest amount you are willing to offer, thinking in terms of what the monthly payment would be.
- Limit contingencies – Contingencies waived usually apply to inspections, appraisals, finances, and insurance. Be aware that waiving contingencies limits your ability to back out of the deal and you take a potentially serious financial risk.
Navigating a bidding war can be tricky, so you need to be prepared for one before it happens. As an experienced REALTOR®, that’s where I can help. If moving is on your mind, call me today.
