How to WIN a Bidding War

In a market like today where there is limited inventory & high demand for houses, it is important to know how exactly to get your offer accepted. We’re seeing multiple offers left and right, so getting pre-approved prior to your home search is a must! In addition to a pre-approval, getting an offer accepted when up against multiple others will require other efforts as well. Ready for the inside scoop? Here’s how to win a bidding war:

3 Steps on how to win a bidding war

Be Prepared. As mentioned, a pre-approval is a MUST. Unless an all cash offer is the case, no listing agent is going to advise their seller to look at an offer without a pre-approval letter. To take an offer up a notch, get direct underwriting (also known as DU) approval. This is taking the pre-approval a step further. A lot of times, having DU approval can make the Seller feel more secure with a buyers loan qualification.
Put your best foot forward. A Realtor can help guide you on this one. When up against other offers, the offer has got to stand out. The real estate agent should have excellent communication with the listing agent to ensure the best chance of acceptance. Remember, the Sellers do not always counter back, so the first offer is more than “just a starting point” in today’s market!
Act quickly. While I understand this is a huge decision for most people, homes come and go FAST. Especially when they’re priced right. Here in Orange County, the remodeled homes that are priced at their Fair Market Value, don’t last longer than a weekend. So back to point number 1, be prepared to move quickly when you see something you like!

The Bottom Line

Our housing market is very strong right now and you’re going to come in contact with a bidding war sooner or later. Demand far outweighs the supply we have. If you’re considering buying, understanding the market you’re about to enter is crucial. Lucky for you, I’m an expert at statistics and would happy to customize them based on the area & price you’re looking at. I’ll also give you the inside scoop on how I get offers accepted! On the other side, if you’re thinking about selling, even in a hot seller’s market like today, it’s important to find the right buyer. Securing the right buyer will ensure you get the most amount of money for your home & with your preferred terms! As always, if you have any questions about buying or selling real estate, please don’t hesitate to reach out with any questions!