How to Win a Bidding War on a House in 2022
The housing market is hotter than ever before, with more people moving near their family or starting a new job. With more people buying homes, housing inventory is on the rise. This means competition can be tough, even for the most qualified buyers. Here are 5 strategies to beat out competing bidders. Make sure to use them to your advantage. These tips are proven to increase your chances of winning a bidding war on a house in 2022.
First of all, be aware of the price range that is most attractive to you. Using a range of price points will increase your chances of winning the bidding war. It also gives you some leeway if you have a large amount of wiggle room. In addition, the seller may offer an escalation clause, which will allow you to offer a certain amount above the highest bid.
In the event that you are outbid, you should consider increasing your offer to show the seller that you are serious about buying the house. This will increase your chances of winning the bidding war, because it shows that you are a serious buyer. A higher down payment also means that you will need less financing, which is a bonus. If the bidding war pushes the price above the appraised value, make sure you have additional cash available.
Pre-approval letters and a large earnest money deposit can help you stand out from other bidders. The seller may be more interested in a buyer who has pre-approval. The lender may call you at night to vouch for your qualifications and financials. However, a lender who doesn’t pre-approve you is not necessarily committed to the bidding war.