In hot housing markets like Central Florida, bidding wars are becoming more and more common. When there’s a high demand and a lack of supply, buyers are forced to compete against each other for their dream homes.
When a home has multiple offers, buyers need to do all they can to appeal to the seller and present themselves as the best candidate.
If you find yourself in a situation, where you are competing against multiple offers, here are 5 things you can do to come out on top.
5 Home Buyer Tips
Be Realistic About Your Budget
It’s vital that you know your exact budget and how much you’re willing to go over to purchase the property investment. Communicate these figures with your agent, so they can fairly negotiate on your behalf. This will help your agent effectively represent you when multiple offers come in.
Your agent can strategically present an initial offer that strikes a balance between a lowball and room to increase should a bidding war ensue.
Use an Escalation Clause
One thing agents advise in a hot housing market is the use of an escalation clause. This is common where bidding wars are concerned because they account for other offers coming in.
With an escalation clause, you approve incremental bid increases up to a certain limit, which allows you to continue to match or top any other offers. This shows sellers that you’re seriously interested, but it also protects your top-end budget.
Submit a Clean Offer
In multiple-offer situations, you and your agent need to ensure your offer is clean and clear. This makes it easy for the seller to take you seriously and accept you. Part of putting together a clean offer is making sure you’ve got a financing pre-approval letter from your lender. It also means having your cash deposit ready to go. All of this shows good faith on your part, which reflects well in the seller’s eyes.
Remember that the seller has the upper hand in a bidding war. This means they’ll not only look at the better deal financially, but they’ll also look at who has better contingencies.
Demonstrating your flexibility on closing dates is a good sign that you’re an easy buyer to work with. Some experts also suggest not asking for certain repair items or being overly demanding on smaller things. If it’s the home you really want, then be willing to work with the seller to reach an agreement quickly.
Write a Letter
Another way to demonstrate to the sellers that you’re the top contender is to show you care. Adding a personal touch to your offer by writing a letter to the seller expressing how much you want to become the new owners of the home can go a long way. This is a sincere gesture that can’t help but win over the sellers.
Find an Orlando Real Estate Agent Near You
By following these smart buyer tips, you can give yourself the edge over the competition. If you’re looking for a home in Orlando, all you need to do is get in contact with The Realty Medics. As experienced Orlando real estate agents, we’ll help you find your dream home, from start to finish.
Contact us today to learn how we can help!