How to Approach a Bidding War, Part 2
If you haven’t already, check out Part 1 of our series on Bidding Wars, to get the scoop on just what happens during a competing offers situation!
Outside of just what happens when in competition, one of the biggest questions and concerns Buyer have is how to ensure their offer is the one accepted! The honest answer is, all you can do is put your best foot forward. With little to no room for negotiating during an offer, you are forced to put all your cards on the table. I know we say it often, but, being prepared really is your best weapon.
Here are some pre-emptive steps to give you more options when it comes to your competitive offer:
As you watch the prices rise, our first instinct is to put all the money forward. In truth, sometimes this strategy works, but, you also need to protect yourself and not stretch the budget too far. Somewhere along the road you have to draw the line, not only for your own personal finances, but, to not overpay within a neighbourhood either. That’s where your early education on the market values comes particularly handy as you become price savvy.
Working with your lender ahead of time will allow you more flexibility when it comes to a financing condition. Understanding your mortgage options not only gives you an idea of your purchase price, but, can also influence your deposit, possession date and additional offer terms.
If they’re withholding offers, why not try a home inspection prior to signing an offer? Knowing full well what you’re getting into removes the need for an inspection condition; which would delay the firm sale!
Know Your Dates
If may seem like a trivial element to the offer but in truth can be a huge negotiating factor. Understanding your options of closing dates (both yours and the Seller’s) can often have an impact on making your offer more appealing.
Lastly, know when it’s not right to compete. It sounds counterintuitive but, often times it’s easy to get caught up with emotions running high. At the end of the day, it’s important to keep a level head, listen to your REALTOR and protect yourself.
If we can help, please reach out!