3 effective tactics to win a bidding war

It’s not uncommon for properties to receive multiple offers and sell above the asking price, particularly in a sellers’ market. If you’ve found your dream home, but the competition is fierce, here are three strategies that can help you win a bidding war.

1. Make a cash offer. If you have the means, offering to pay for a property in cash shows the seller that you’re serious. It also promises the seller a quick, smooth transaction since a lender won’t be involved.

2. Waive the financing contingency. A seller will be more likely to accept your offer if it doesn’t hinge on loan approval. This is why getting a fully underwritten mortgage pre-approval is a smart first step for prospective homebuyers.

3. Submit a personal letter. This can help you stand out from a crowd of potential buyers and create an emotional connection with the seller. Briefly explain what you love about the property and why you think it’s a perfect fit for your family.

Depending on the situation, you might want to use a combination of these tactics. Keep in mind that working with a local real estate agent to craft a strong offer can significantly increase your chances of success.