Uncategorized February 17, 2018

How To Win A Bidding War

If you have been looking at homes for sale in Lynden, WA, you may feel a bit like a contestant on The Bachelor. Or Hunger Games? Let’s just say it is not uncommon to find yourself one out of multiple buyers trying to win the same property. Homes for sale in Lynden, WA go pending before you can even write the offer OR you are outbid in a multiple offer situation. While it is way more intense in other parts of the country, we are dealing with our own hot market. While experts forecast relief by the last half of the year thanks to more inventory, there is concern about increased prices AND mortgage interest rates. So if you are buying homes for sale in Lynden, WA, starting sooner rather than later is recommended. However, inventory is still in a seller’s market, which means the competition is fierce. What can you do as a buyer who just wants to find that perfect piece of Lynden, WA real estate? I have some great tips!

  1. Get pre-approved!

If you think getting pre-qualified is the same, it is not. The pre-qual simply confirms your income and how much a bank could lend you based on your credit profile. A pre-approval tells you how much you can actually spend and what your budget is. Being pre-approved is a great way to fast track your offer to a seller.

  1. Use an escalation clause

If you are new to Lynden, WA real estate, this is a great way to strengthen your offer in a multiple bid situation. This is an addendum to your original contract that states you will incrementally increase up to a certain limit as other offers come in at or above your offer. This is a smart strategy as it not only shows you are serious, but it keeps your name in the game as other people show up to throw their ring in the hat. Just be smart enough to know when it is time to walk away!

  1. Don’t get over the top with the contingencies

In a seller’s market, know that the buyer does not have the upper hand. The seller does. When they get a lot of multiple offers, the less complicated the better. Keep the demands to a minimum when putting in offers on Lynden, WA homes for sale. If there are 5 other solid buyers offering roughly the same amount of money, they are going to go with the one that is low maintenance and matches their specific needs.

  1. Be flexible

Speaking of, find out what the seller’s ideal move out is. Knowing whether or not they need a little extra time or need to move quickly can come in handy and work to your benefit if your timeline is flexible. For example: Let’s say the seller needs to stay a little bit longer after closing and it has come down to your offer and one other. The other buyer may be offering a little more money but can’t honor the seller’s desired move out date, but you can. They may pick you as it benefits them more. Find out what the seller needs and wants and consider being courteous and granting it to them if you can. It may save you money and you can still beat out the competition.

  1. Write a ‘love letter’

People respond to emotion. From successful marketing campaigns to talking yourself out of a speeding ticket. If you have a genuine, heartfelt reason that you feel makes you the best candidate for Lynden, WA homes for sale, tell the seller with a love letter. Let them know how much it would mean to you if your offer was picked.

  1. Don’t count yourself out after a bidding war

If you lose the bidding war on a home, all is not lost. Have your Lynden, WA realtor stay in touch with their Lynden, WA realtor and let them know you are still interested. That way, if something falls through, they will remember you and let you know the home is still available.

The best thing you can do, before getting pre-approved, is hiring an experienced Lynden, WA realtor. We work alongside you, lend our market knowledge and guide you through tough negotiations. Which means you get back up in a bidding war. With the homebuying process so cutthroat sometimes, it is normal to lose a bid or two. However, when you have an expert by your side helping you craft competitive offers, you can navigate the trickiest of transactions with confidence. For more information, feel free to give me a call!