5 Ways To Get Your Offer Accepted in the Middle of a Housing Bidding War

By
Managing Real Estate Broker with Maxus Realty Group of Samson Properties Broker - Realtor - CEO

Maxus Realty Group Agents are local specialists with knowledge to help you buy and sell the right home, at the right price.

We are passionate about you as a client, we will always protect your best interests just because it's the only way we do business day in and day out.

Today, we'll talk about 5 Ways To Get Your Offer Accepted in the Middle of a Housing Bidding War

 

Many rejected home buyers are finding lots of difficulties getting offers accepted by sellers.

In this market, when buying a home the question to ask is: 

 

How do I get my offer accepted on a house where there is a lot of competition? 

 

As 2022 started, inventory levels are at historic lows.

Simply, 

There isn't enough homes to sell to all the homebuyers ready, who are ready to buy. 

 

As a real estate agent, where I represented  many buyers over the last few years, I have to figure out a way to win against multiple offers and get a contract accepted for my clients.

This is the reason I came up with my top 5 ways to get an offer accepted in the middle of a bidding war. 

 

#1 Include an Escalation Clause to Your Offer

An escalation clause is a provision inside a contract that allows the seller to escalate our offer above the highest sales price submitted. 

The buyer’s contract price is automatically escalated to a maximum escalation point or the highest bid from other homebuyers. Whichever comes first 

Example: An offer of $500,000 with an escalation clause to raise the offer up to $525,000. There is no need to amend the contract, and it is automatically put into effect, provided there is a higher offer. 

If a competing offer was submitted for $520,000, the seller then has the ability of raising my offer to $525,000 and be the higher offer between both contracts. 

 

#2 Removing The Appraisal Contingency

 

 

 

READ MORE: https://www.maxusrealtygroup.com/blog/1717/5+Ways+To+Get+Your+Offer+Accepted+In+The+Middle+Of+A+Housing+Bidding+War

 
???Thinking of selling your home? Let Fernando take over the marketing of your property with our unique 99 STEPS system 
www.reallynicehomes.com/sell  - Call or text 240-426-5754 for more

Comments (5)

John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

In our overheated market here in the San Francisco Bay Area, we constantly experience competing offers when we write an offer for our buyers.

I always tell my clients that they need to present the most powerful and compelling offer that they can...highest and best...if they really want the house. 

I do not think that I have ever seen an escalation clause as a listing agent and I do not support the idea of an escalation clause with my buyers. If I received an offer which contained an escalation clause on one of my listings, I would simply counter it to the amount of the limit...unless there is a better offer. By including an escalation clause in the offer, the buyer has already said that they are willing to pay that amount. If the buyer wants an escalation clause of up to a certain amount, the offer should be written for that amount. Either that amount wins or it does not. No special gimmick will help the buyer whose limited escalation clause is bettered by another buyer who simply offers a higher price and better terms than an offer with an the escalation limit.

Jan 13, 2022 06:50 PM
Paddy Deighan MBA JD PhD
federalfinanciallawgroup.com - Vail, CO
Paddy Deighan J.D. Ph.D

I am from NJ ....you can use baseball bats too!!! joking aside than you for the informative post

Jan 14, 2022 01:05 AM
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

I generally have the Buyer pay the inspection costs like well, septic, pest, etc. That helps the Seller know they don't have that burden and it is a cleaner contract.

Jan 14, 2022 07:49 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Great post for buyers.    Every local market is different.    I check with the sellers' agent about the sellers' personal requests - that often helps.   Re: escalation clauses I'll ask: if the agent is used to them and comfortable explaining to their sellers, and if they will provide the price page of the next highest offer to confirm the price.

Jan 14, 2022 08:30 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

It continues to be a challenge with multiple competing offers and homes selling for over asking price, although there are exceptions. Buyers must understand they must come in with their best offer, terms and conditions from the start to be in the best position. Even then there is only 1 winner.

Jan 14, 2022 10:18 AM