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The Ultimate Game Plan in Winning Bidding Wars
Dated: July 29 2021
There are times when the real estate industry and market tend to be unstable and have low inventory. When this happens, there is a big possibility that good properties become pending within minutes after going live on MLS. Most likely, bidding wars take place and sellers have to choose between many significant offers before they choose the winning bid.
In a highly competitive market, inventory tends to be lower than usual. During a seller’s market, bidding wars are inevitable. These bidding wars can be very exciting and nerve wracking at the same time. If you are a buyer trying to win a bidding war, then you’ve come to the right place. Here is the ultimate game plan to win a war in real estate:
Make your offer stand out. When participating in a bidding war, you not only have to show financial capacity, but you also have to make your offer stand out. This does not necessarily mean going over the asking price. It can also mean that you present the seller and their broker with a well-written offer letter. A well-written offer letter comprises one neat and concise document. We’ve noticed so many people who disregard this and just send emails back and forth to the broker. Submitting a good offer letter shows the letter that you are sincere and are very interested in the home.
Provide the seller with a guarantee and a good closing date. Sellers and their brokers often have this fear of real estate deals falling through. Even in a bidding war, buyers could end up backing out at the very last minute. By giving the seller a guarantee that you’ve thoroughly checked everything and guarantee you won’t back out, this can give the seller’s side certainty in your proposed offer. Also, a good closing date will make your offer stand out from the rest. The faster a deal closes, the better it is for the seller.
Pre-qualification is not enough. Make sure you have pre-approval documents prior to placing a bid. Some people often ask what’s the difference between a pre-qualification and a pre-approval. Whilst looking at a home, pre-qualification is totally acceptable. It shows the estimate of how much your loan will be based on your income and credit score. However, having a pre-approval letter or actual approved loan documents shows that you’ve already applied to a lender and have been approved a certain amount. Being pre-approved is an edge when competing in a bidding war. This will give the seller certainty that you are a serious buyer and competitor in the bidding war.
It doesn’t hurt to have extra money on hand. If you really love the home you’ve placed a bid on, it would make sense to have extra money on hand. There’s no guarantee that your offer will be accepted. Having extra money on hand will help you make a counteroffer if need be.
We at The Stephanie Woods Team have broad and precise knowledge when dealing with bidding wars. Our agents are equipped with knowledge and skills in this aspect of real estate which can help you gain insight into bidding wars and how the process takes place. We completely understand your needs in real estate and have the appropriate information to help you acquire your dream home. Our agent's service not only the Prescott area but all of Yavapai County, Arizona including the Verde Valley. Please feel free to check out our online Google reviews.
Stephanie Woods is happy to have her team help with all of your real estate needs. We can also locate and interview a qualified agent in another state to make sure you are getting the qualified agent you desire for your new purchase or sale. Stephanie Woods has a large referral network she works with that exudes excellent customer service. Call us today as we look forward to servicing your real estate needs. The Stephanie Woods Team at Woods Hometown Realty, 928-237-4455 prescottazhomefinder.com.