Bidding wars come with the territory, the territory of sellers’ markets and historically low housing inventories throughout the country.
Help your clients win their bidding wars with these seven winning strategies.
- Suggest that your clients set their price limits from the get go. No wasting time…desirable homes are in high demand and sell quickly. While your client might fantasize about having “wiggle room to negotiate their best price,” the home is sold…to someone else.
- Come into the deal with cash. Sellers like cash. They like cash so much that, according to Redfin, cash offers double the chances of “winning” the home.
- If your clients don’t have the cash, suggest that your clients waive the financing contingency. This is risky but if your clients are pre-approved, the odds are in their favor that they’ll be able to get financing once the deal is in place. According to Redfin, the chances for “winning” the home are improved by 58% when prospective buyers waive the financing contingency.
- Speaking of waiving contingencies, you might suggest that your clients waive inspections and simply buy the house “as is.” This can also be quite risky. Beautiful homes can sometimes have terrible problems underneath rooftops, floorboards, etc. On the other hand, “as is” may, if your client is lucky and/or you have trained, eagle eyes to scope out structural/electrical/whatever problems, uninspected “as is” costs may be minor concerns in the scheme of things.
- Some agents suggest that prospective buyers include a personal letter to the seller when submitting their offer while other agents do not. Either way, a letter to the seller about how wonderful it would be for your client’s young family to “grow up” and appreciate the house likely can’t hurt.
- Do not tell the seller that the prospective buyer is going to gut the house. Sellers like to think that their particular home is perfect as is.
- Suggest that your client not be afraid to walk away from a “dream house” if the deal is less than desired. A dream house, like dreams themselves, is usually not unique; another dream house will come along.