How To Win The Bidding War On Your Next Home
The market has cooled a little, so instead of competing against 30 or more bids, you may only be competing against five to ten bids. Still, it feels like a feeding frenzy every time a home hits the market. How can you compete and win against multiple bids? Here are some strategies that have proven effective for my buyers.
1. Use a lease-back clause in the contract. Remember to put the seller’s needs ahead of your own. The seller may need to stay in the home longer than 30 days from the list date. If you consider the convenience of the seller, you need to find out when they prefer to close and maybe even negotiate a post-closing occupancy for the seller until they can move to their new home. Using the lease-back clause in the contract has proven our most effective negotiating tool—even more effective than offer a higher bid.
2. Don’t ask for seller concessions. The days of the seller paying your closing costs is long gone. You will probably need to pay for your own home warranty if you want one. You may want to consider paying for some of the seller’s closing costs. Sometimes this will win the bid over higher offers.
3. Use an escalation clause with a cap. Can you imagine how disappointed you would be to miss out on the home of your dreams because another offer came in $1,000 higher than yours? The best way to avoid this scenario is to use an escalation clause that will automatically top competing bids by $1,000 to $2,000. Of course, employ a cap to avoid paying a higher price than you’re comfortable with.
These are just three effective strategies I have used for my clients. I have many more that I share only with my clients. But always, open communication with the seller’s agent is key. What is important to the seller? What are they stressed about? If you solve that problem, you win the bid.
Contact us today at 480-235-7911. We're here to provide you with the professional guidance you'll need in this difficult market to win your next bid!