How to Compete and Win in a Bidding War
Today's market is dominated with multiple offer sales. Many people have to make 6-8 offers to finally land that property. So, how do you compete and win in this market. Here are 5 easy steps to follow.
First, realize that many properties are under priced to attract multiple offers. You should first do a market analysis to determine the market price of the property.
2. No Conditions
Secondly, you need to go in with no conditions. Get a home inspection or status certificate ahead of time. Make sure you have financing for the price you want to pay.
3. Big Deposit
Come in with a big deposit. The norm is 5% so come with 10%.
4. Save Some for Round Two
Usually there will be two rounds of bidding. Save something for the second round.
5. Pick a Maximum Number
Pick a maximum number you will pay for the property. If it sells for more than your number, then you are happy to walk away.
Finally, don't beat yourself up if some irrational buyer makes an incredible offer. You know what? They may not be able to close anyway.