How to win a real estate bidding war: Episode #266
How to Win a real estate bidding war!
Hello! Welcome to Todd Miller TV. Today’s subject is how to win a Real Estate bidding war. I’ve read the statistic today that in some markets, Vegas is probably one of those markets, 75% of all properties have more than one offer on them. So this can be very disconcerting if you’re not used to this. Traditionally the way it works is you see 5 or 6 houses, you pick the one you like and make an offer and you either get it for too low or whatever and then you move on to another house. But now, where in a situation where that’s changed in a lot of markets. So there’s some/I worked on some tips, because you know, we do sell a lot of houses here, a lot of listings, we see a lot of offers, and over the couple thousand properties that we have listed the last 5 years, we sort of see a trend in what makes seller like to accept an offer. So I’m gonna share this with you, these are my top 5 things that I wrote down how to win a Real Estate bidding war. The first thing is, when you submit your first offer, make it the best offer right off of that. So, your highest price. What I mean is, if it’s listed for $100,000, don’t try to game the system and go “Well, you know, we really, we like it better than the other houses and we pay 105 or we pay 103, But you know, I think maybe the other people will bid last so we’ll bid 99 or you know.” Don’t try to game the system. If you want to how to win a Real Estate bidding war, ’cause it’s true, that sometimes the sellers don’t counter everybody, they just pick the highest offer and accept it. And if you’re not the highest one, you don’t get a counter. And we had situations where agents submits an offer with their buyer and then they come back later on and say “Well I see somebody else got it but we never got a counter; My client’s would have paid more.” And I’m like we’ll if they would pay more they should have submitted an offer for more off the bet. Because the seller does not have to counter everybody. They have to counter, accept, or reject but they can just accept the best offer. They don’t have to counter you back. So, if you want your best chance, that’s tip number 1, okay? Tip number 2, have a very strong preapproval. If you’re paying cash, have a proof of funds that say your name, the bank, and showing in the bank. Okay? If it’s a preapproval letter from a loan, it has to be very strong and powerful stating it’s a preapproval not a pre-qualification. You want that strongest sense that they/that you could definitely go for with the purchase. Okay? Number 3, a large earnest money deposit. You know, if it’s $100,000 house, as a general rule, a percent is what typically people go by. $500,000, $5,000 as a general rule. Now, on/if you wanna make a statement, if you’re buying/we just had someone they can offer in a property $200,000. Their EMD was like $25,000. Hey that makes/that gets some attention. We’re paying cash, we put $25,000 earnest money deposit. That shows our intention that we really you know, wanna move forward with the transaction more likely to get accepted. Because they have more money at stake, and more money at play if they don’t move forward with the deal. You know. So, okay, number 4, make it a clean offer.
How to win a real estate bidding war.
Don’t ask for a budget mid picky things how to win a Real Estate bidding war. Meaning don’t say “Okay, well I’ll pay you list price plus $10,000 but I also want/I want this repair allowance, and I want you to move out 5 days before close of escrow. And I want this, and I want it cleaned, And I want the carpets cleaned, and I want this removed and I want this fixed. I want this, you know. I want contingencies, I’ve got to sell my house first. And, don’t do that. Make it very clean. Make it very straight forward. You know, it’s a purchase, this is the date, and make it clean. If you have a lot of you know, what I would say High-Maintenance issue, if you’re a buyer, it’s gonna be very difficult in a competitive market because sellers can see that. They can sense it. The agent can sense it. A lot of times they will say “Hey look, this is, these are all the things that could potentially happen. Okay? Fifth tip for how to win a Real Estate bidding war, No emotion! Okay? It’s a house, there are lots of houses, I know that buying a primary residence could be very emotional, you’ve already pictured in your head, your kids playing in the yard, you cooking in the kitchen or working at the garage or enjoying the backyard, or how great it’s gonna be because you finally found a house. The veterans were large and they each have their own bathroom and you just, you know it’s a very emotional experience and you don’t get the house. And now you’re shattered. But guess what? Another house will come up. It’ll be fine. Everything will be good. So take the emotion out of it. That’s the best way to solve that problem. You know, your agent should be talking to you about this things nd helping you through this process but I do realize that for owner-occupants this could be very emotional but really, if you break it down, you’re just buying a house. You can be happy no matter where you live. Whether the house is great or not. It’s something you crave your whole life so, just take the emotion out of it and really think about that. If you get it, great! If not, then that’s fine. Just look at it this way, if you don’t get the house, maybe that’s good karma that’s telling you that a better house is on the way. And you’re gonna get that one. So anyway, those are my things that I wrote down. The 5 top ways to win a Real Estate bidding war. That’s my update for today and hope to see you on another video. Thanks.