Tips for Winning a Bidding War

Shopping for a home is an exciting experience, but it can be quite stressful if you have found the house of your dreams and another buyer also wants the home. During the current housing market, housing demand has exceeded supply, creating a seller’s market. This type of market causes competitive bidding wars to start among buyers.

We are here to tell you that just because other buyers are bidding on the same home does not mean your offer cannot be accepted. Now with AnnieMac Private Equity Cash2Keys programs, winning a bidding war has never been easier.

Here are some tips to make your offer stand out among bidders and more information on Cash2Keys.

What is a Bidding War?

Once you have found a home that you love, the next step is to make a competitive offer. If there are one or more other prospective buyers who also made an offer, you may find yourself in a bidding war. A bidding war is a term used to describe multiple interested parties who are making offers on the same home. The seller ultimately decides which offer to accept. If the offers are similar, the seller may ask the prospective buyers to increase their offers to outbid each other. Bidding wars benefit the seller and normally result in them getting more than asking price for their property. Bidding wars are extremely popular during a seller’s market and have become common due to the high housing demand during 2020 and 2021.

How to Win a Bidding War

Do not be discouraged if you enter a bidding war. There are a few ways to make your offer stand out and help you win a bidding war.

• Get Preapproved for a Mortgage – this is one of the most important steps in the mortgage process and should be the first thing you do before shopping for homes. Getting preapproved shows sellers that you have an interest in their house as well as financing for purchasing. Preapproval also tells you how much home you can actually afford so that you are not bidding on a home you cannot afford.
• Make a Competitive Offer – if you want the seller to accept your offer, it needs to stand out among the rest. Unfortunately, buyers cannot know for sure what other bidders are offering. When you are making your offer, consider bidding above the asking price to stay competitive. A low offer is likely to be rejected simply because there are other higher bids. This is where an experienced real estate agent can be helpful. They will help you understand the current real estate market and determine an appropriate bid on a house with multiple offers. They will also let you know if the home is fairly priced or if the price is way too high even with a seller’s market. Your agent can advise you on a competitive offer to enter the bidding war.
• Pay in Cash – if you can pay in all cash, do it. All-cash offers are extremely appealing to sellers because they eliminate the waiting period that comes with mortgage approval. If you are unable to pay in all cash, consider offering a larger down payment to show the seller that you are a serious buyer.
• Waive Contingencies – a contingency is a part of the home contract that allows a buyer to walk away or renegotiate due to certain factors. Most home bids are contingent offers. These clauses often allow buyers to walk away from the home if the inspection reveals issues or if their own home does not sell as quickly as they would have liked. One way to possibly win a bidding war is to not include any contingencies or limit certain ones. Make sure you talk to your real estate agent before making any contingency decisions as they are ones that can completely change the homebuying process. Contingencies protect you as a buyer, so you want to be aware of the decisions you are making before you officially drop any contingencies.
• Flexible Closing Date – another way to make your offer stand out is to be flexible on the closing date. Sellers have many different reasons why they want to close on a specific date. Whatever the reason, sellers will be more likely to accept a flexible closing date offer.

AnnieMac Cash2Keys Program

Winning a bidding war may feel like a challenge, but with AnnieMac Private Equity Cash2Keys’ two new programs, Cash Offer and Buy Now, Sell Later, your odds at securing your dream home are sure to increase.

Benefits of a cash offer:

• Competitive Market - Demand for homes is at an all-time high, and Cash Offers are the best way to beat the competition.
• More Confidence, Less Stress - Cash offers give you the power to buy and sell homes on YOUR terms.
• Short Supply - Available homes are scarce and flying off the market, so make a best first impression with a strong cash offer.
• Even the Odds - Don't be outshined by home buyers with deep pockets. Get a fair shot at your dream home with cold, hard cash.

Cash Offer Program: This program is for first-time home buyers who want to win a bidding war easily and efficiently. AnnieMac Private Equity will help you make a cash offer sellers can’t refuse and allow you to have a fair shot at owning a house your family will love.

Buy Now, Sell Later Program: This program is perfect for current homeowners who want to purchase a new home before selling their current one. AnnieMac Private Equity will buy the home you want so you can take your time to sell your old one. Once your home is sold, you will buy the new one from AnnieMac directly.

Make a cash offer sellers cannot refuse! Learn more about Cash2Keys here.

High housing demand and low supply can cause many bidding wars to ensue. Entering a bidding war may feel overwhelming but if you have the right team on your side and know the best tips for winning, you are sure to be a successful buyer.