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5 Strategies To Win a Bidding War That Have Nothing To Do With Offering More Money

Courtesy of @tiktokrealtordavid / @tayadicarlo / @homesbytia via TikTok

Today’s homebuyers are all too familiar with bidding wars.

The low inventory and high demand we’ve seen over the past couple of years have forced many multiple-offer situations with buyers doing anything they can to stand out from the pack. Some go the route of throwing more money into the ring—anywhere from $100,000 to $1 million (yes, $1 million!) over the asking price. Others add enticing—and unusual—extras on top of their offers, like a year’s worth of frozen yogurt or a pledge to name their first-born child after the seller.

Truth be told, cash is king in most bidding wars. But if you don’t have an extra pile of cash sitting around to bolster your bid, there are other ways to make your offer stand out.

Once again, we turned to TikTok—one of our favorite places to find quick, concise real estate tips from agents who are right in the thick of this crazy housing market. Here’s what they had to say about winning a bidding war without offering more cash.

1. Move quickly and have your team in place

@angiestevensonrealestate

Highest offers don’t always win.✨

♬ original sound – Angela Stevenson

Angela Stevenson, a real estate agent in the South Shore area of Massachusetts, says she’s won bidding wars for clients where theirs was not the highest offer. How? By moving fast and letting the seller know you want to close quickly.

“You could have a [purchase and sale agreement] signed in three to five days instead of 10 to 14. That’s really appealing to a seller,” Stevenson says.

To expedite your timeline, she recommends having your loan officer and pre-approval lined up, your real estate attorney hired, and a home inspection scheduled the day after the offer is to be accepted.

2. Make a strong offer—and add a time limit

@tiktokrealtordavid

How to always win a property bidding war. Follow for more #tiktokrealtordavid #tiktokrealtor #learnontiktok #realestatelife #buyertips #2022 #stoprenting #2022tiktok #realestatehacks #realestatetips #tips

♬ Paradise – Ikson

Naples, FL, real estate agent David De La Noval says his favorite technique is to submit a strong offer with a time limit giving sellers four to six hours to respond. It will make your offer stand out and can make a smart seller accept your offer right away for fear of losing it.

3. Lowball your bid

@tayadicarlo

You don’t❌ have to play the 🏡 game… get creative instead 😏 #realestatetip #househunters #houseshopping #biddingwar #letsmakeadeal

♬ FEEL THE GROOVE – Queens Road, Fabian Graetz

Wait, what? Doesn’t lowballing an offer go against everything you know about buying a home right now? Not necessarily.

If you want to avoid getting into a bidding war, Taya DiCarlo, a real estate agent in Torrance, CA, suggests looking for homes that are actually 5% above your budget and have been on the market for more than 60 days.

“Buyers will wonder why the home hasn’t sold, so you can go in and lowball to see if you can negotiate,” says DiCarlo.

Sellers with homes that are still on the market might also be eager to complete a deal and get that “Sold” sign on their front yard.

4. Use an experienced local agent who will fight for you

@homesbytia

#greenscreen Solid strategy to win the war!!#bidding #contingencies #loan #sell #trending #FollowYourDreams #didyouknow #condo #house #property #realestate #buyer #housing #tiktokpartner #foryoupage #seller #realtor

♬ dance(256762) – TimTaj

Tia Hunnicutt, a real estate agent in Oakland, CA, has seen her fair share of bidding wars as a representative for both buyers and sellers.

Having a knowledgeable agent is invaluable, she says, because the pro can tell you how much you should offer based on comparable properties in the neighborhood. You should also work with an agent who is well-known, has a relationship with the listing agent, and will fight for you.

5. Waive your appraisal contingency

@mortgagejon

How to win a bidding war on a house #mortgage #realestate

♬ original sound – Jon Dabach

In some cooler markets, waiving contingencies is becoming a thing of the past. But there are still plenty of cities in which buyers find themselves in bidding wars and decide to waive contingencies to make their offer stronger.

Mortgage broker Jon Dabach says waiving an appraisal contingency is actually not too big of a deal because your lender requires an appraisal for the loan.

“So you can lean on your loan contingency for the appraisal,” says Dabach.

The post 5 Strategies To Win a Bidding War That Have Nothing To Do With Offering More Money appeared first on Real Estate News & Insights | realtor.com®.

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