Tips for Battling the Bidding War
For those in an area of a hot seller's market, here is some excellent advice on how to handle a potential bidding war for that perfect property you want from Lise Howe:
From the buyers’ standpoint, getting into a bidding war for a house they want is never fun. They can end up offering more money than they ever planned to spend, and still end up without the home of their dreams.
A real estate agent should be able to tell you ahead of time if bidding wars are likely in your desired neighborhood. Here are four real estate tips to win a bidding war, if it comes to that:
- Make a high offer. Instead of making a low offer with the expectation that you’ll increase it if you have to, offer as much as you can afford immediately. Let the seller know this is your best offer, and that you can’t go any higher. This can help avoid any haggling back and forth, and will save you time and hopefully will get you the house.
A variation of this method includes offering $20,000 or so above the asking price, showing upfront that you’re a serious buyer.
A big down payment: Having a large amount of cash for a down payment of 20 percent or more can show you’re a serious buyer. Get a pre-approval letter from your lender, have paperwork proving you have the money, and pay a higher earnest money deposit if you can.
- Go conventional: Instead of getting an FHA or other government-backed loan that can have longer escrow periods, be approved for a conventional loan. This can require coming up with a bigger down payment and having good or excellent credit scores, but can lead to shorter waiting periods and show you’re a strong buyer.
Have the paperwork from your lender available to submit with your offer, such as a pre-approval letter. If you’re offering cash, you’ll also need paperwork to prove you have the money. Having a higher earnest money deposit can also help.
- Add an escalation clause. An escalation clause allows your real estate agent to go above the highest offer, but only to a point. For example, on a home with a listing price of $350,000, you could make an offer of $400,000 with an escalation clause of $5,000 over the highest price but only up to $450,000. If another buyer offers $425,000, your automatic clause would increase your offer to $430,000.
However you enter a bidding war, always remember that your exit strategy is pretty simple — there are always other homes on the market waiting for you to buy.
If you are looking for a home in the DC metro area, you know there is more to the process than just picking a property and making an offer. You need to find the best location for your wants and needs, get a great price, and work with a lender who will make your life easier - not harder. Trust your search with a Realtor who is licensed in DC, MD and VA and really knows the city and all its secret neighborhoods.
Start your search with the Lise Howe Group, Washington Natives who love the city and all its quirkiness! If you are moving or relocating to Washington DC, be sure to ask for our relocation guide. Call us at 240-401-5577 to schedule an appointment or email us at lise@lisehowe.com. Too excited to wait to talk to us about a great home? Just click here to start that home search.
If you want to see what is for sale in Washington DC, Chevy Chase and Bethesda, check out these links below:
Bethesda Single Family Luxury Homes
Chevy Chase Single Family Luxury Homes
Luxury Single Family Washington DC Homes
Washington DC Single Family Homes Under $1 Million
Lise Howe
Keller Williams Capital Properties
4646 40th St NW
Washington DC 20016
240-401-5577 (24 hour direct)
Licensed in DC, MD, and VA
Associate Broker, GRI, ABR, CRS
The Lise Howe Group
Howe Real Estate Should Be!
www.lisehowegroup.comwww.homesinchevychasebethesda.com
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