Q: How Can You Win a Bidding War for the Home You Want?

Central Iowa Real Estate Podcast with Misty Darling

Here are six tips that will make your offer stand out in a bidding war. Nationally, multiple offers are becoming more and more frequent in the real estate market, and that’s certainly true in most segments of our Des Moines market. As a buyer, when you make an offer for the home you want, it has to be presented in a way that will actually win the home. If you work with an inexperienced agent who doesn’t have a strategy, you’ll end up making offer after offer with nothing to show for it. The key is to work with the right agent. Additionally, there are six tips to help make your offer stand out in a multiple-offer situation: 1. Have a strategy in the presentation. My team and I sell hundreds of listings each year, and I can tell you that your agent isn’t doing you any favors by just sharing your offer and not saying anything about it. This leads me to my second tip… 2. Share the love. We often have our buyers write a letter or take a picture of themselves to share with sellers because it’s a way of adding a personal touch and showing why they love the home. Many of us have a sentimental connection to our homes, which means sellers will want a buyer who will enjoy their home the way they did. 3. Shorten or waive contingencies. You don’t want to make it difficult for the seller to like you. Asking for things like closing costs, a 21- day inspection period (as opposed to the normal seven-day period), or professionally painted walls is a good way to do just that. “Have a strategy to win and don’t try offering less than the list price.” 4. Pre-inspect the home. This is somewhat of a continuation of the previous tip, since getting a pre-inspection allows you to waive the inspection contingency in your offer. Plus, it will help you uncover any potential problems with the home. 5. Make your best offer. In other words, don’t test the seller by offering less than what you’re able. In a multiple-offer situation, it behooves you to put your cards on the table. You don’t want to miss out on the home you want over $500 or $1,000. 6. Make it easy for the seller. For example, they may have to wait to take possession of their next home, so give them extended possession of your home after closing to make the moving process easier. Remember—win the bidding war for the home you want before worrying about the appraisal, inspection, etc. Have a strategy to win and don’t try offering less than the list price. If a home has hit the market in the last week and it has multiple offers, that means it’s priced or underpriced for the market, which means you’re underpaying by paying the asking price. If you’d like to know more about how to win the home you want or there’s anything else I can assist you with, don’t hesitate to reach out to me. I’d love to help you.