Winning the Bidding War: Here’s what you need to know.

Does the highest offer win?

In multiple offers, generally, the highest offer wins. However, there are circumstances where you could lose if you haven’t met the seller’s requirements. In a highly competitive market, we want to help you increase your chances of securing your dream home with an offer that can’t be refused.

Start with a strong offer.

When there are multiple offers on a property, it’s essential to make a strong first impression. This usually means making an offer higher than the asking price and includes favourable terms and conditions for the seller. While you don’t want to go too high and overpay for the property, making an attractive offer is vital. If you make a lowball offer, you may not get a second chance to increase it before the seller chooses another buyer.

Get pre-approved so you can make an offer without a finance condition.

Getting pre-approved for a mortgage amount is crucial. This means you work with a mortgage broker or bank to determine how much money they will lend you. When the time comes to make an offer on a property, you can confidently waive the financial condition, which will put you one step closer to a winning offer.

A pre-inspection allows you to waive the inspection condition.

When sellers set an offer date to create a bidding war, most will have a home inspection ready for buyers to review. The purpose is to allow the buyer to comfortably waive the inspection condition. Make sure to ask for the home inspection and review it with your agent.

Be flexible.

Winning a bidding war often requires some flexibility on your part. For example, you may need to be flexible on your closing date. Being willing to work with the seller, rather than against them, can help build goodwill and increase the chances of having your offer accepted.

Submit a 5 percent deposit with your offer.

Show you are serious about your offer and that you have the financial means to close the deal by submitting a deposit on offer night. With 12 offers, you must have a deposit to win the bid.

Work with a seasoned real estate agent.

A skilled real estate agent can be invaluable in winning a bidding war. A good agent will help you to craft an attractive offer that stands out from the competition and can help you to negotiate favourable terms with the seller.

Are you ready to start looking for the home of your dreams? We’re here to help.

Get in touch with us today to book a consultation.