In a today’s market, buyers have to compete for available homes. That means, finding ways to make your offer stand out from others. Put simply, you can’t expect to win a bidding war, if you aren’t prepared to offer more than the next buyer. However, it’s not just a matter of offering more money – though that’s certainly part of it.
There are other strategies as well, like waiving contingencies or promising a faster close. How you approach making your offer can be the difference between disappointment and purchasing your dream home. So what’s the best strategy for winning a bidding war? Well, according to one recent analysis an all-cash offer improves a buyer’s chances by 290 percent. This isn’t surprising. It also isn’t an option for most home buyers.
The second most effective strategy was waiving the financing contingency, which protects the buyer in case they aren’t able to secure a mortgage in time. But while it may improve your chances by 66 percent, it has its risks, including losing your earnest money deposit. Other popular strategies – including escalation clauses and waiving the inspection – are less risky but also less effective. Mostly, though, that’s due to the fact that they’re more common in a seller’s market, where buyers are trying to outmaneuver each other. (source)
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