Real estate bidding wars can be ugly, but if you're using the right strategies, you can come out as the winner without having to multiply your offer. You don't have to beg or fight, you just got to strategise. Bidding can never be ideal, but you have to do all that you can to make sure you win.
How To Win Real Estate Bidding tip 1:
Offer to pay the deposit in cash.It may mean having to drop a big amount of money which may arguably be unwise, but it is a smart tactic to put you first in line. Other buyers who don't pay the deposit in cash can inconvenience the seller once they don't get approved for financing. So if you can pay in cash for your deposit, it means that you're reliable and it would be great for the seller if he/she can get paid quicker. If you have the ability to pay the deposit straight cash, go for it. Besides, that amount of money won't only assure your of the property, that money will also be a payment that you will eventually pay anyways.
How To Win Real Estate Bidding tip 2:
Add a personal touch by means of a hand written letter to the seller. Letters make things a bit more formal and subconsciously persuasive. You can explain more using a letter and this will be your chance to create a bond that may go a long way in your bidding goals.
How To Win Real Estate Bidding tip 3:
Use an escalation clause. When buyers write up their offer, it usually only involves a price. Setting an escalation clause can set you apart from other buyers. This tip is for you to avoid being outbidden without a fight. An escalation clause is a simple contract that increases your offer in case someone outbids your offer. It lists your original offer, the amounts that you aim to beat other offers with, and a max offer. This step is best used when there will be a time period review of offers.