How to Win That Bidding War
1. A Backup Offer Is A Secret Weapon – It’s hard to accept that you’ll never be able to know the reason you lost the house to someone else. There are so many reasons…maybe they offered more money, or their terms were slightly better than yours. What you can do is ask the seller if they’d consider your offer as a backup. Read: How to Win the Bidding War on the Home You Want.
2. Backup Offers – Sellers love backup offers because it puts pressure on the original accepted offer to close the deal quickly, knowing that there is another buyer ready and eager to swipe it.
3. Timing– Once a seller has a deal on the table and it is progress, they are already picturing the time in the near future where they’ll finally be rid of the home. However, things go wrong all the time on the buyers’ side of the transaction, and when something does go wrong, they’ll be contacting you for your backup offer, even if its lower than the first. See: How to Win a Bidding War.
4. The Inspection – Sometimes after an inspection, the house falls out because there are problems that the buyer doesn’t want to deal with, can’t handle, or the seller won’t credit or fix. But, in reality, the good news for you is those issues won’t go away. The original buyer may walk away, and you can swoop in.
5. Loans – As loan qualifications become tougher, more home buyers are finding they can’t get their loan approved, and they may have to back out of the deal. If you have a pre-approval letter, or a secured loan from a bank, you’ll be next in line.
6. Backup Date Expiration – Set a time for your backup offer to expire. The seller will be nervous that if something goes wrong, they won’t have a Plan B to lean on. Also, a time limit will force the hand of your competition, which may make them unable to close the deal.
7. Get it In Writing – Once the seller agrees to accept your offer as backup, make sure to get a a full agreement that is signed by the both of you. This agreement should clearly state the price and contingencies. For further reading on this subject, see: Want to Win a Bidding War? Make Yourself Desirable.