Buyers often have to go above and beyond to make sure their offer stands out from the competition. Sometimes, multiple buyers vying for the same property end up in a real estate bidding war.

Today’s housing market is one of the most competitive in history, with 56% of Trulia home offers facing competition nationwide. To assist buyers to prepare to inevitably compete for a home. I asked Trulia agents to share the best innovative ways for winning real estate bidding wars in 2021.

The tips below go beyond basic bidding-war tips like waiving contingencies, offering all cash, and free rent back. Though buyers should also focus on those ways, which are often highly effective. Here are three of them.

3 BEST WAYS TO WIN REAL ESTATE BIDDING WARS

WAY # 1

Get My Financing in Order BEFORE I shop!

A real estate bidding war is a different animal from being the only buyer in town. Thus, it doesn’t seconds that the old rules should be thrown out the window. I still have to come into every bidding war with my financing in tip-top shape.

Make sure my credit score and debt-to-income ratio are where they need to be. If they’re not, I have to work on these items first, then pursue other pre-approval plans.

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WAY # 2

Plan My Down Payment

The bigger the down payment, the more fascinating my bid will look to a seller when my intention is to win a bidding war. A 20% down payment is a considerate starting point. A big down payment may even be able to assist if I make an offer above the asking price, or if the home I’m bidding on appraises for lower than my offer price. 

More cash upfront can compensate for these constraints and possibly assist me to win a real estate bidding war. Plus, more cash always looks attractive to sellers.

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WAY # 3

Understand Sales Price vs. Appraised Value

What I pay for a home and what the home actually appraises for are two entirely different things in the eyes of real estate experts. A home’s appraisal value is determined by a licensed professional who evaluates the home’s features and amenities, such as condition, and quality of the home, and home improvements into consideration. The appraiser will also focus on the price of comparable homes that have sold within a certain time frame in the locality, as well as market trends.  

If a home is listed for more than its appraised value or if I’m trying to win a real estate bidding war that’s driving up the home’s price tag. I undoubtedly need to cover the difference between my winning bid and what the home appraises for.

WHAT WINNING WAYS YOU ARE GOING TO FOLLOW TO GET YOUR IDEAL HOME?

Winning a real estate bidding war on a house takes a bit of planning and a bit of luck. My realtor will be able to assist guide me through each step of the procedure so that I know I’m making the perfect decisions at the perfect times.

I will be confident, be calm, and trust that if it’s meant to happen, it will.

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