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I wanted to talk today about the topic of winning a bidding war and competing against multiple other offers on a home. I have five tips to offer to help you win, because the competition right now is fierce.
- Come in with the right mindset. Treat the list price like it's the minimum bid on eBay; that’s the least amount of money that the home is going to sell for. Odds are the price will only go up from list price.
- Come in with the strongest possible pre-approval letter that your lender can possibly write for you.
- Come in with 1% earnest money if at all possible. It's going to make your offer look more serious and desirable.
- Use an escalation clause. This is my secret weapon. The biggest challenge is that none of us know what the top sales price on these homes is going to be. While I want you to win the bidding war, I don't want you to spend $10,000 more than the next closest offer. The escalation clause states that we will beat the highest offer that the seller has in writing by $1,000 or $2,000, but we won't exceed a maximum capped sales price that you decide on before submitting the offer.
- Offer the seller the best possible terms. We ask in advance if the seller wants to keep possession for 48 hours after the close. If so, we'll insert that into the offer to stand out from the crowd.
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These tips will give you the edge over other offers.
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I hope you find these tips helpful if you're looking to buy in the Salt Lake City area. For more tips or elaboration on how to compete in this market, give me a call today! I'd love to work with you.
