Buyer
March 13, 2019

Ugh, bidding wars. They can be nasty, nerve-wracking, and even heart-breaking. Nowadays, most real estate markets present buyers with huge challenges, due to high demand coupled with low housing inventory. Oftentimes, bidding wars become the rule, especially in a seller's market.

Buyers who run into competing offers need to up their ante if they want to win the home they love. If you don’t have enough cash to go above the asking price or give an all-cash offer, remember that hope is not lost. There are many ways to get creative when giving your offer. You just have to analyze which strategies you can apply to find the right approach, in order to get the upper hand.

Here are five ways you can compete in a bidding war and land your dream home without giving an all-cash offer:

1. Craft a thoughtful offer letter.

One simple but surefire way to pull on the heartstrings of the seller is to write a personal offer letter. Remember that sellers are attached to their homes—which are often filled with memories of their children and family growing up and countless holiday celebrations. By writing a thoughtful offer letter, you can create an emotional connection to the owners.

Get ahead of the other buyers by putting a little heart and soul into it. Be genuine in expressing why you want the house and how the community is an ideal place for your family. One trick is to include photos of your family and pets. It can help the seller visualize the people they'll be passing their precious nest to. However, be extra careful about the things you say in your letter because there are some things to avoid. For example, it’s a terrible idea to include your plans to tear down part of the home and renovate it to your liking. You can consult your realtor and get help from a trusted friend or relative if you need help crafting your message.

2. Provide a sweet gesture.

Want a good way to sweeten the deal and get the home you want? Make a nice gesture that the seller would surely love. No, it isn't cheating. Rather, it’s acknowledging the fact that selling a home is just as stressful as buying one, so you want to help the seller get through it.

During home showings, take a hint from the homeowner’s decor and displays to get an idea of what they love. Then use it to your advantage. If they’re an avid sports fan, then tickets to a game they like may help. Or, if you know they love sweets or baked goods, and you are an amazing baker yourself, why not whip up a batch of cookies or pies for them? Either way, these gestures can help you establish rapport with the sellers, which in turn, can make a big difference in whether they will accept your offer to purchase the home.

3. Waive the mortgage contingency.

An alternative to giving an all-cash offer is waiving the mortgage contingency. The mortgage or financing contingency means the deal is contingent on your loan being approved by the lender. Waiving it is a good strategy if you're confident enough and know that securing a mortgage won’t be a problem. It will assure the seller that the deal won’t fall apart and you’ll be approved for a loan.  While it cannot completely outweigh an all-cash offer, it can be just as effective. The last thing the seller wants is a potential buyer walking away from the deal with a heartbreaking “Sorry” because they failed to secure a mortgage.

Be confident that you’ll secure a loan by getting a fully-underwritten loan pre-approval from a lender. Also, avoid making big mortgage mistakes like opening a new credit line, increasing your debt, or changing job in the middle of the transaction.

4. Keep the inspection time frame short.

Waiving the home inspection can be a big risk especially when your biggest financial investment is at stake. So assuage the seller of a potential hurdle by keeping the home inspection time frame short— a week, if possible. That way, the seller doesn't have to wait anxiously for an extended period before the inspection can go through.

Likewise, make sure that the contingency time periods you’ve stated in your initial offer remain the same in the “purchase and sale agreement,” which includes your detailed offer.

5. Determine the seller's target closing date and give it to them.

The best way to complement the strategies mentioned above is to make your offer solid and submit it in a reasonable time frame. Remember that sellers have a deadline for accepting offers and want to meet their desired closing date. For some, their target close date can be a critical factor in their decision-making process. Conforming to the homeowner’s preferred deadline can help your offer stand out and land your dream home.

Suggested Blogs

Here's Your Fall Cleanup Checklist To Prep Your Yard For Winter
Here's Your Fall Cleanup Checklist To Prep Your Yard For Winter
Can A Generator Add Value To Your Home?
Can A Generator Add Value To Your Home?
Moving To A New State? Don't Forget To Add These Tasks To Your To-Do List
Moving To A New State? Don't Forget To Add These Tasks To Your To-Do List
7 Little Ways You Can Upgrade Your Bathroom (Without Draining Your Savings)
7 Little Ways You Can Upgrade Your Bathroom (Without Draining Your Savings)
Heads Up! Here Are 5 Issues That Could Delay Your Real Estate Closing
Heads Up! Here Are 5 Issues That Could Delay Your Real Estate Closing

12 Reasons Why This is a Better Market for Buyers

I TALKED TO A LOT OF POTENTIAL BUYERS AND SELLERS EVERY DAY WITH WHAT I DO AND INEVITABLY A COUPLE OF TIMES A DAY I'M GONNA HAVE PEOPLE THAT I'VE BEEN TALKING WITH JUST SAY, I'M GONNA WAIT TO BUY. I'M JUST GONNA WAIT AND YOU KNOW, IN MY HEAD, I'M THINKING, WAIT FOR WHAT YOU THINK, INTEREST RATES ARE GONNA GO BACK DOWN TO TWO OR 3%. I DON'T THINK WE'RE GONNA SEE THAT AGAIN IN OUR LIFETIMES. I REALLY DON'T UM I HOPE I'M WRONG ABOUT THAT. UM BUT I JUST, I DON'T SEE IT HAPPENING. WHERE THE PRICES AREN'T CRASHING DOWN. WE'RE STILL, IT'S STILL A SELLER'S MARKET, THERE'S STILL UM MUCH MORE DEMAND THAN THERE IS SUPPLY OF HOMES. AGAIN, I STARTED THINKING, I GO, WHAT ARE SOME OF THE REASONS WHY THE MARKET IS BETTER FOR BUYERS AS WE SIT HERE IN THE, YOU KNOW,THE LAST QUARTER OF 2022 VERSUS HOW THINGS WERE FOR YEARS ENDING IN WHEN THE MARKET SHIFTED RIGHT AROUND EASTER THIS YEAR. THAT'S WHEN THE MARKET CHANGED. SO I CAME UP WITH 12 PROS AND ONLY ONE CON. SO LET ME SHARE THOSE WITH YOU.

 

PRO NUMBER ONE IS A SELLER PAID CLOSING COSTS. THESE SELLERS WERE NOT PAYING ANYTHING UH FOR YEARS, IN MOST INSTANCES, YOU KNOW, THEY PAY THEIR, THEIR REAL ESTATE FEES, DOC STAMPS IN THE DEED, BUT YOU'RE BUYING, YOU KNOW, YOU AS THE BUYER WOULDN'T WOULD HAVE TO COME OUT OF POCKET FOR JUST ABOUT EVERYTHING ELSE. WE'RE GETTING SELLERS TO PAY, CLOSING COSTS IN SOME INSTANCES NOW AS A NEGOTIATION POINT. SO THAT'S EXCITING. IT'S LESS OUT OF POCKET FOR THE BUYERS.

 

THE SECOND REASON IS SELLER PAID RATE BY DOWN. WHAT WE'RE DOING IN SOME INSTANCES IS RATHER THAN REDUCE THE PRICE, WE'RE TAKING THAT MONEY THAT YOU WOULD NEGOTIATE WITH THE SELLER AND HAVING THE SELLER BY YOUR RATE DOWN. SO I MEAN THAT'S EXCITING TO BUY IT DOWN. MAYBE, AS WE'RE SITTING HERE IN OCTOBER, THERE ARE 7%, YOU CAN BUY IT DOWN TO SIX, MAYBE EVEN FIVE. SO THAT'S SOMETHING THAT WASN'T GOING TO HAPPEN IN THE PAST.
 

THE THIRD IS THE SELLER PAID TO ONE RATE BY DOWN. AND WHAT THAT IS IT'S A NEW, IT'S A NEW PROGRAM THAT A LOT OF LENDERS HAVE WHERE THE SELLER BUYS DOWN YOUR RATE AND IT'S 2% LESS THE FIRST YEAR. SO IF IT'S 7% YOU'D PAY 5% THE SECOND YEAR, IT'S 1% LESS. SO IF IT'S 7% YOU PAID SIX AND THE THIRD, YOU'D BE AT SEVEN IN THE THIRD AND BEYOND, YOU'D BE AT 7%. OKAY? BUT HERE'S THE DEAL WITH THAT THAT GETS YOU THAT GETS YOU ABLE TO AFFORD MORE HOUSE HERE IN THE SHORT TERM AND THERE'S GONNA BE OTHER,ONE OF TWO THINGS WILL HAPPEN IN THE IN THE FUTURE EITHER THE FIXED INTEREST RATES ARE GONNA COME DOWN SO YOU CAN REFINANCE OR THERE'S GONNA BE OTHER LENDING PRODUCTS THAT ARE GONNA COME OUT MAYBE ARMS UM LOOK THEM UP WITH OTHER SOLUTIONS TO,BECAUSE AFFORDABILITY IS AN ISSUE NOW WITH THE RATES GOING UP IN THE PRICE INCREASES IN RECENT YEARS. SO THAT'S ANOTHER OPTION FOR YOU ON THE TABLE.

THE FOURTH REASON WHY BUYING A HOME CAN BE BETTER HERE NOW AT THIS POINT IN 2022 THAN IN RECENT YEARS IS SELLER PAID REPAIRS. UM YOU KNOW, SELLERS DIDN’T WANT TO DO ANYTHING. IN FACT, THEY SOME OF THEM DIDN'T EVEN WANT BUYERS TO HAVE INSPECTIONS FOR HEAVEN'S SAKES. NOW THE SELLER IS THE SELLERS ARE GOING AHEAD AND MAKING YOU KNOW, REPAIRS ON THEIR PROPERTY BEFORE PUTTING THEM ON THE MARKET. THEY'RE REPLACING ROOFS, YOU KNOW, IF THEY NEED TO REPLACE ROOFS AND THERE'S ALL SORTS OF THINGS THAT THE SELLERS ARE WILLING TO DO THAT THEY WERE RESISTANT TO DO IN RECENT YEARS JUST BECAUSE THERE WAS SO MUCH DEMAND.

 

THE 5TH REASON IT'S BETTER TO BUY A HOME IS SELLER PAID IMPROVEMENTS. SELLERS ARE GOING AHEAD AND MAKING IMPROVEMENTS TO THEIR HOME PRIOR TO PUTTING THEM ON THE MARKET WHERE UM YOU KNOW, WHEREAS BEFORE THERE WAS JUST ABSOLUTELY NO REASON TO, SO, YOU KNOW, YOU AS THE BUYER ARE GONNA BENEFIT FROM THAT BE THE ONE THAT WILL BENEFIT MOST FROM THAT.

 

THE SIX POINT OF WHY THIS IS A BETTER HOME FOR A BUYER TO BUY TO BUY MARKET IN RECENT YEARS IS PRICE NEGOTIATION. THERE WAS NO NEGOTIATION AND PRICE PREVIOUSLY IT WAS, HOW MUCH ARE YOU WILLING TO PAY OVER LIST PRICE? TO TRY TO GET THE HOME RIGHT AS CRAZY AND PEOPLE ARE PAYING, YOU KNOW, PEOPLE ARE PAYING, YOU KNOW, $6100 OVER LIST PRICE. THEY WERE GIVING AWAY THEIR SEASON FOOTBALL TICKETS. I MEAN, MAD TRIPS, its MADNESS. OKAY, ALL THAT'S GONE. SO WE'VE GOT PRICE NEGOTIATION NOW, THAT'S THE WAY IT SHOULD BE.

 

THE 7TH REASON WHY THERE'S IT'S BETTER TO BUY A HOME HERE IN THIS MARKET THAN THE PREVIOUS MARKET IS YOU PAY LESS THAN ASKING PRICE. RIGHT? YOU FIND OUT IF THERE'S ANY OTHER COMPETING OFFERS, IF THEY'RE NOT, WE CAN NEGOTIATE A LITTLE BIT RIGHT? SO, I MEAN, THAT'S EXCITING, YOU GET A BETTER DEAL THAT WAY.

 

THE 8TH REASON WHY IT'S BETTER TO BUY A HOUSE IN THIS MARKET THAN THE PREVIOUS HOT MARKET. YOU DON'T HAVE TO WAIVE INSPECTIONS, OKAY, WAIVING INSPECTIONS IS A TEAR. IT WAS A TERRIBLE IDEA, BUT I MEAN, PEOPLE HAD TO DO IT TO GET A HOUSE RIGHT? UM YOU WANT TO MAKE SURE THAT EVERYTHING IS AS YOU WANTED TO BE BEFORE YOU BECOME THE OWNER OF THAT HOME AND UM, YOU KNOW, NOW WE'VE GOT TIME TO DO INSPECTIONS AGAIN AND JUST MAKE SURE, YOU KNOW, IT'S A, IT'S THE SMART INVESTMENT FOR YOU. SO THAT'S BACK IN PLAY.

THE 9TH REASON WHY THE MARKET IS BETTER NOW FOR BUYERS THAN IT WAS IN THE RECENT HOT MARKET IS INSPECTION NEGOTIATIONS, OKAY. UM, EVERYTHING WAS AS IS BEFORE FOR THE MOST PART, OR VERY, VERY SMALL, REPAIR LIMITS THAT WERE PUT ON THE, PUT ON THE CONTRACTS AND UH, NOW YOU CAN GET STUFF FIXED. YOU KNOW, IT'S A LOT EASIER. IT'S A LOT EASIER TO GET A FIXED SELLER, TAKE CARE OF IT BEFORE YOU MOVE IN AND THEN HAVE IT BE YOUR PROBLEM ONCE YOU BUY IT.

 

 

THE 10TH REASON WHY IT'S BETTER FOR BUYERS TO BUY NOW THAN IT WAS IN THE PREVIOUS HOT MARKET IS YOU GOT TIME TO THINK IT OVER RIGHT SO MANY BUYERS JUST NEEDED A HOUSE, RIGHT? AND I MEAN, IT'S LIKE, YOU GOTTA, YOU GOTTA DECIDE RIGHT NOW, YOU KNOW, IT'S IN, YOU KNOW, OFTENTIMES THE BUYERS WERE SETTLING FOR A LOT OF STUFF THEY REALLY DIDN'T WANT JUST BECAUSE THEY NEEDED A PLACE TO LIVE. SO YOU GOT A LITTLE BIT OF TIME TO THINK THINGS OVER AND JUST MAKE SURE THAT THIS IS GONNA BE THE RIGHT MOVE FOR YOU.

 

 

THE 11TH REASON WHY IT'S BETTER TO BUY A HOME IN THIS MARKET THAN THE PREVIOUS HOT MARKET IS YOU CAN HAVE CONTINGENCY CON CLAUSES IN YOUR CONTRACT, YOU CAN'T HAVE THAT, I MEAN, PREVIOUSLY, IF YOU HAD A CONTINGENCY CLAUSE, WHY WOULD THE SELLER EXCEPT THAT WHEN THERE'S YOU KNOW 10 OTHER OFFERS OR 20 OTHER OFFERS THAT DON'T HAVE THAT RIGHT? MAYBE GOT A HOME TO SELL. NOW YOU CAN FIND A HOUSE, YOU KNOW, THAT'LL FIND A SELLER THAT'LL TAKE A CONTINGENCY ON THE SALE OF YOUR HOME AND YOU CAN TIME EVERYTHING BETTER THAT WAY AND YOU KNOW, HAVE A LOT LESS STRESS.

 

 

THE 12TH REASON WHY IT'S BETTER FOR BUYERS TODAY THAN IT WAS IN THE PREVIOUS HOT MARKET IS YOU'VE GOT LONGER CONTRACT TO CLOSE IF YOU WANT IT RIGHT THERE, THEY'RE NOT PUSHING TOO CLOSE AND YOU KNOW, 20 OR 30 DAYS LIKE THEY WERE IN THE PREVIOUS MARKET. SO YOU'VE GOT LONGER TIMEFRAMES, YOU KNOW, MAYBE YOU'VE GOT A HOME TO SELL OR YOU KNOW, YOU JUST DON'T WANT TO MOVE FOR A CERTAIN PERIOD OF TIME, YOU NEGOTIATE IT OUT NOW.

AND OF COURSE, THE ONE CON OF BUYING TODAY AND IT'S A VERY SHORT LIST IS THAT INTEREST RATES ARE HIGHER, RIGHT? UM YES, THERE'S STILL HISTORICALLY LOW EVEN AT 7%, BUT IT'S A LOT HIGHER THAN THREE. AND UH WE UNDERSTAND THAT, BUT YOU KNOW, LIKE WE ALWAYS SAY UM MARRY THE HOUSE AND DATE THE RATE UM THEY'RE GONNA COME BACK DOWN. I MEAN THERE'S GONNA BE OTHER PRODUCTS THAT ARE GONNA SHOW UP. UM IT'S A LOT BETTER TO BUY AT 7% THAN IT IS IF IT GOES UP TO 10 OR 12 AND THERE'S A LOT OF REALLY SMART PEOPLE OUT THERE WHO ARE SAYING IT'S GONNA GO UP TO 10 OR 12 BEFORE THIS IS ALL SAID AND DONE. SO 7% ISN'T GONNA LOOK SO BAD WHEN THAT DAY COMES. SO AND AGAIN LIKE I SAID, YOU CAN ALWAYS REFINANCE LATER IF YOU WANTED TO. UM THERE'S GONNA BE ALL SORTS OF OTHER PRODUCTS THAT WILL COME OUT. BUT YOU KNOW AT LEAST YOU CAN GET THE HOME YOU WANT AND LIVE YOUR LIFE. AND WHEN THAT DAY COMES YOU'LL HAVE OTHER OPTIONS. IF I CAN HELP YOU WITH ANYTHING BUYING OR SELLING, JUST REACH OUT TO ME. YOU CAN IF YOU'RE SEEING THIS ON SOCIAL MEDIA, GO AHEAD AND DIRECT MESSAGE ME, I'LL BE THE ONE ANSWERING YOU SO MAKE SURE THAT YOU DO IF YOU TALK TO ME I WILL BE THE ONE TALKING TO BACK, IT WON'T BE AN ASSISTANT, IT'LL BE ME. AND SO JUST KEEP THE CONVERSATION GOING. IF HE COULD AND UM IF YOU PREFER YOU CAN CALL OR TEXT ME AT 85O-677-1630. YOU FOUND THIS HELPFUL GO AHEAD AND LIKE THIS, SHARE IT WITH ANYBODY THAT YOU MIGHT KNOW UM PUT IN THE COMMENTS WHAT YOU THINK ABOUT THIS PROS AND CONS LIST. AND UM IF YOU WANT TO FOLLOW ME ON INSTAGRAM YOU CAN FOLLOW ME @MEETSCOTTGREGORY, LOOK FORWARD TO TALKING TO YOU SOON. TAKE CARE!

 

Schedule a call with Scott here: https://calendly.com/scottgregoryteam/consultation-with-scott-gregory?month=2022-05

Get a full value cash offer for your home in 24 hours: https://www.fullvalueoffers.com

Get priority access to pre-market and off-market properties: https://www.findotherhomes.com

Search all homes for sale along The Emerald Coast (more accurate than Zillow): https://www.HomesByTheGulf.com

Like us on Facebook: https://www.facebook.com/ScottGregoryTeam

Follow us on Instagram: @MEETSCOTTGREGORY

Real Estate Agents ... Build a retirement for yourself with stock and revenue share streams, and sell more real estate at the same time: https://www.JoinTheRealEstateRevolution.com

#scottgregoryteam

#exprealty

#realestate

#realestateagent

#realestatebroker