In a perfect world, you’d put a bid out on your dream house, the seller would accept, and everything would be great.  Even if you and the seller had to go back and forth a bit, you’d still end up with a great house.  But more and more, especially when it’s a seller’s market, people end up in bidding wars with other potential buyers.  What can you do if you get caught up fighting for a property?  Here are a few tips you can use to win the bidding war.

  1. Bidding WarsGet pre-approved.  If you can show a seller that you’ve already got your financing lined up and can put your money where your mouth is, you have an edge.  This is especially true if the other potential buyers aren’t pre-approved.  Even better, have a pre-approval letter that’s specific to the property you’re bidding on.
  2. If you’re going in with all cash, you have several advantages.  For one, there’s no worry that the financing will fall through.  Another advantage is that you have the option to waive the appraisal.  While this isn’t always recommended, it can tip the scales in your favor.  Make certain you have the paperwork backing up your cash offer.
  3. If you’re not waving the inspection (and again, you probably shouldn’t), you’ll want to have your home inspector ready to spring into action.  You can actually have an inspection done before you make an offer, or you can have the inspection done after.  Remember, too, that the seller might have had a home inspection done already.  They may offer the report to buyers.
  4. Have as few contingencies as possible.  A seller will see an offer with several contingencies as an offer with numerous stumbling blocks to a successful sell.  The fewer contingencies you have, the better position you’re in to win the bidding war.
  5. See the home as soon as possible.  If you can, see the home on the day it goes on the market and be ready to put in the bid.  Your real estate agent can speak to the listing agent to find out what the sellers want.  The easier you make it on them, the more likely they’ll pick your offer.

If you really want to bid from a point of strength, you’ll want to follow several of these tips.  If you’re interested in a specific property you know is about to be listed, you should get pre-approved, see the property as soon as it’s listed, and make a bid with few contingencies.