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How to be Competitive in a Bidding War

Wednesday, September 9, 2020   /   by Vp Of Operations

How to be Competitive in a Bidding War

If you have been looking for a home in 2020, you know how hard it has been to have your offer accepted. One of the most stressful situations in home buying occurs when other buyers are competing for the home you want. To make an offer on the perfect house only to find out you have entered a bidding war is certainly frustrating.

It doesn’t happen often, but if there is a shortage of homes for sale, or you are looking in a particularly sought-after area, it’s a possibility. It’s common to feel helpless as you wait for communications to come back through the agents involved, hoping for some good news.

To that end, We’ve put together some tips for how to make a multiple offer situation as comfortable and successful as possible for our buyers.

    • Pick a real estate agent who is well organized and an exceptional communicator. A lapse in communication could be interpreted as disinterest. Don’t get overlooked because your agent didn’t communicate with the seller’s agent in a timely manner.
    • Have your pre-approval letter or proof of funds in hand. You may have a great offer to submit, but if you can’t back it up with proof you are qualified to purchase the home the seller may just move on. Make a cash offer if you are able. If not, make as large a down payment as possible, and use a lender that communicates effectively with all parties.
    • Offer more than the asking price. Your agent should do a comparative market analysis to give you a good idea on the home value as soon as you decide to make an offer. If it’s not too out of line with the CMA or your budget, offer more than the asking price.
    • Keep your offer clean and simple. Don’t ask for contingencies that aren’t necessary to closing the transaction.
    • Have your deposit ready. Offer a deposit that sends the message that you are serious about your offer and have the funds ready to turn in as soon as your offer is accepted. You may want to include a copy of your escrow check with your offer.
    • Offer flexibility with your closing date. Convey through your agent that you are willing adjust the closing date to suit the seller’s needs.
    • Include a personal letter with a family photo. Let the seller know who you are, what you like about the home, and that you intend to take good care of their former residence. Let them know what it is about the home that has already made it special to you.
This may not win you your dream home, but these tips will certainly help you have a more competitive edge. This market is tough for buyers but don't be discouraged, be prepared.
    Ottawa Home Real Estate Team w/ Solid Rock Realty, Brokerage
    Stephanie McLeod
    5 Corvus Court
    Nepean, ON K2E 7ZE

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