In this ultra-competitive market, buyers need to do all they can to make the strongest offer when the right house becomes available. Buyers may want to consider some of the following tactics to help set their offer apart from others in a bidding war.

Disclaimer: as with all financial undertakings, there is an element of risk present in using any of these tactics. Consult with your realtor to better understand negotiations.

Pre-approval letter

Use a reputable lender highly specialized in mortgage banking. Have your pre-approval letter current, within 20 days, and if possible, specific to the property you're bidding on.

Be readily available to see homes

Be prepared to see a house whenever the seller allows. Do anything you can to give yourself a head start on the offer process, even if you have to leave work early or go in late.

Compose a personal letter

Sellers are often more likely to choose a buyer with whom they feel comfortable. A home is typically someone's prized possession and they want to know you'll care for it like they do. Send that message with a heartfelt letter showing how much you love their home. 

Offer over asking price

In this market, sellers often price their homes aggressively to incite bidding wars. Consider looking for homes slightly under budget to allow for wiggle room in your available funds so you can put your best offer forward - sometimes you should offer above what similar homes sold for to preempt other offers.

Escalation clause

In certain circumstances, an escalation clause can be a great tool to raise your chances of beating other offers while ensuring that you don't overpay. It allows you to offer the seller a certain amount over their highest offer up to a pre-determined price.

Shorten contingency time frames

Shorten the inspection window, purchase and sale date, and mortgage contingency if possible. Speak with your lender to determine the earliest mortgage contingency date.

Be flexible on closing date

Some sellers have inflexible circumstances and will need to sell to a buyer who is willing to accommodate their time frame.

Increase down payment

Sellers may feel a buyer with a higher down payment of 10-20% is more qualified than a buyer with a 3.5-5% down payment. Consider putting more money down if you are able. Along with this, put a larger deposit down when you submit your offer.

In general, it will make your offer seem more attractive if you are generally more accommodating on all fronts. Good luck, and for assistance with the bidding process or general questions contact 54 Realty at 813-435-5411 or [email protected] !