Bidding War Tips

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You’ve heard about real estate bidding wars.  Just when you find the home of your dreams, you end up in a bidding war with other buyers.  Why are prospective buyers competing for houses more than ever in our current real estate market?  What can you do to come out on top as the bidder to proclaim victory?

Why We Have Bidding Wars
There are three things happening right now that are driving home buyers into battle:  low interest rates, demand for homes and low supply of homes for sale.  All of this means that there are multiple buyers bidding on the same home, and homeowners may have to pay more than asking price to get the home they desire.  This creates a stressful situation for the home buyer.

Preparing For Battle
You need a battle plan.  If you do not prepare, you will walk away disappointed.  Mary Layman will not let that happen.  She has developed a master plan that she will work through with you to win the bidding war.  She is a skilled negotiator, as well as an experienced realtor.  Your plan is instrumental in bringing your dream to reality.  What is just as important as your plan?  It’s outstanding leadership.  You’ll find that quality in Mary.  You’ll find that Mary’s strategy, guidance, and expertise is your biggest advantage.

Achieve Victory!
When making an offer on a home, there are 12 tips that you can put into action to increase your chances of buying your chosen home, and set you apart or make an impression on the home seller.  The most important thing to remember is this saying:  “You only get one chance to make a great first impression!”  Be prepared!  Follow Mary’s 12 step plan.

Mary Layman’s Strategy - An Operation Designed for Success!

1)    Offer Asking Price, or More!  Increase your offer by 5 or 10%.

2)    Find Out Seller’s Needs - Duration of escrow?  Preferred Title and Escrow Company?  Need a Rent Back?

3)    Read All Inspections and Reports - After reading these seller documents, sign, acknowledge date, and include a receipt for reports form.

4)    Pay for Seller’s Fees - Such as Escrow Fee, Natural Hazards Disclosure, Pest Inspection, Smoke Detectors, Water Heater Bracing, and Carbon Monoxide Detector.  Refrain from asking for a Home Warranty.

5)    Write a Letter to the Seller - Introduce yourself and your family.  Tell the seller why you like the house.  Include a picture.  Mary Layman, as your realtor, also writes a letter on your behalf.  She includes the strong points of your offer and other strengths.

6)    Include all Pre-Approval Forms - Such as the Pre-Approved Letter, source of Down Payment and Closing Costs funds.  Ask your lender to call the Listing Agent to tell them what a great buyer you are!

7)    Increased Deposit Amount - Increase your deposit by 10 or 20% as a good faith deposit.  Sign a Liquidated Damages Provision.   If you back out after your contingency period is over, you’re capped at 3%.

8)    Confirm Physical State - If the seller is going to look at offers on a certain day, do the physical inspection, then write the offer without the Physical Inspection Contingency.  This lets the sellers know that you know the condition of the house and that you are buying it as is.

9)    Write Without Appraisal - If you have 20% down, and you have some extra cash in the bank, write the offer without the Appraisal Contingency.  The seller is assured you will move forward even if the house does not appraise.

10)    Buy For Cash - If you have the cash, write the offer for cash!  Get your loan during the Escrow period, or after Escrow is closed.

11)    Fix All Errors on Contracts - Check spelling, no cross outs, clean it up!

12)    Meet With the Sellers - It’s to your advantage if you can meet the sellers.  If your offer is close to another offer, the sellers will have made a connection with you and may choose you!

Put Your Plan Into Action Today!

Give Mary Layman a call!  Her direct line is 805-448-3890.