How to win a bidding war with multiple offers? Homebuyers hate them, but bidding wars are something you have to prepare for if you want to buy a home in a desirable neighborhood.
Here are my insider tips:
First, be ready to buy a house—financially and emotionally. You need to be confident and organized. Make sure you have liquid funds for a downpayment and you are pre-approved for a mortgage.
Get to know the area where you want to live and the agents who dominate that area. Follow them on social media. Keep track of the homes they’re selling and be ready to jump when you see one you like.
When you see a house you want, tell the listing agent how much you love it. Feel free to address any negatives—repairs needed, for instance—but do so with an upbeat attitude. The agent needs to know that you’re willing to do what it takes to get that house.
Book a visit instead of a home inspection and bring a home inspector. This gives you a general overview of the home and allows you to make an offer without requesting an inspection. The fewer stipulations on the offer, the more likely it is to be accepted.
Offer a 10% down payment instead of 5% and have that cheque written and ready to go. It may mean moving some money around but it will certainly put you ahead of the crowd.
Finally, prepare three different offers so that you are prepared for any scenario. The amount you offer will depend on how many other offers there are. Having just one offer means that you could pay too much OR that you offer too little and lose a house that could have been yours.