When purchasing residential real estate, there is an art to winning the final bid. You found the house you love, but you still have to compete with others to ensure that you end up in the house you decided to put your energy towards.
According to the U.S. News, there are ways you can set yourself above the competition. Many sellers look for more than just money.
Seek pre-approval
Most people do not have cash upfront to put down on a house. Instead, they rely on mortgage loans. Before you put an offer on a house, make sure you have pre-approval for a mortgage. Look for a provider who can offer you flexibility. All offers require an inspection period before closing, so find a lender who can provide a quick turnaround.
Reduce contingencies
A lot of sellers want to close a deal as quickly as possible. If there are a lot of contingencies, it can take a lot longer. If you can show the seller your flexibility, you have a higher chance of winning the bid. Eliminate contingencies and work within the seller’s timeline. When you work with the seller, he or she may choose your bid over the rest.
Consider covering costs
If you cover the closing costs and title fees, then you may win the bidding war. Sellers want to pay as little as possible from the sale of their homes. Offering to pay closing costs can make your offer worth more to a seller than someone who may have a higher competing bid.
One tip to keep in mind during a bidding war is not to become too carried away. Never offer more than you can provide.