3 tips for winning a bidding war

Do you have your sights set on a particular home but aren’t the only one? If so, you may find yourself in a bidding war. Here are three tips for coming out on top.

1. Write a personal letter. Consider including a cover letter when you submit an offer. In it you can talk about why you’re attached to the home, what makes you a good buyer and why the seller should choose you.

This may tilt the odds in your favor, especially in circumstances where the home has sentimental value to the seller. It’s likely that they want to sell it to someone who’ll take good care of it.

2. Keep your offer clean. The highest offer doesn’t always win out in a multi-bid scenario. Sellers will often settle for a lower offer if it’s the “cleanest.” A clean offer is one that has preapproved financing and isn’t a conditional sale.

In the same vein, don’t be stingy with your deposit. A substantial payment shows that you mean business. Note that this money goes toward the down payment if you get the home and that you’ll be reimbursed if you don’t get it.

3. Be flexible about conditions. Making life easier for the seller will give you the advantage in a bidding war. Specifically, you may want to relax some of the conditions you’ve set.

For instance, you could consider dropping conditions such as cleaning up the yard, retiling a room or leaving certain appliances behind.

However, don’t waive conditions that protect you as a buyer, such as your home inspection contingency.

Finally, turn to your real estate agent for additional tips and strategies. You can bet that they’re battle-hardened when it comes to bidding wars. Good luck!