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Today, we’ll discuss how to win a bid once you’ve found the perfect house.
I’ve received several questions about this topic. "What do I do if I’m in that multiple offer situation and I’m competing against someone else?" In this scenario, the key is to make yourself more desirable to the seller. The seller has to choose between two different offers, so standing out is extremely important. One way to stand out is to pay a lot more money, but no one wants to do that. However, there are alternatives to making yourself stand out.
- You need to get pre-approved with a lender. This is a must. You must go to a reliable, local lender to review your numbers, such as your income and what liabilities you’ve had. When you send a pre-approval letter to the seller, it gives them the confidence to know that you are a serious buyer. A pre-approval will make the seller feel good about your bid.
- A larger down payment significantly helps you, too. It gives the seller the same kind of comfort as pre-approval. The seller will see you’re making money and might even think you are more qualified to pursue their house.
- Have all your paperwork in order. Have all your ducks in a row. If you use our team, that will happen. We make sure to go above and beyond to make sure every single duck is in a row, every I is dotted, and every T is crossed. We assure the paperwork is organized before sending it off. Having paperwork together will help you when negotiating.
- Forget lowball offers. If you’re in the middle of a negotiating battle, you don’t want to be submitting a lowball offer. The market is heated. There is plenty of inventory available. Houses are selling very close to their list price. Your competition will require you to make a strong offer. You don’t have to bid money over the listing price, but you need to boldly approach an offer.
- Keep all your contingencies very reasonable. If there are any contingencies, such as appropriate time for inspections or ensuring full approval of your finances, keep them reasonable! We suggest allowing ten days to complete home inspections. If you allocate thirty days to complete an inspection, this prevents a buyer from planning their next steps. Normally, we suggest two to three weeks to obtain a firm approval from their lender before locking into a contract when buying.
If we can make sure these five things are in alignment, you’re going to give yourself an excellent opportunity! With these tips, your offer will be accepted. Thank you for checking our video blog. If you have any questions, please contact me at 254-598-4055 or ryan@ryansmithhomes.com. I look forward to checking in with you soon!
