In a competitive real estate market, bidding wars can drive home prices up quickly. However, winning doesn’t always mean paying the highest price. With the right strategies, you can secure your dream home without overpaying. Here’s how:
1. Get Pre-Approved and Be Financially Ready
Obtain mortgage pre-approval to show sellers you’re serious.
Have your down payment and earnest money deposit ready.
Consider working with a lender who can provide a fully underwritten pre-approval.
2. Make a Strong First Offer
Start with a competitive offer based on market value.
Avoid lowballing, as it can turn sellers away in a bidding war.
Offer a slightly odd number (e.g., $505,750 instead of $505,000) to stand out.
3. Minimize Contingencies
Consider waiving or shortening the inspection period (but still get an inspection).
Be flexible on the closing timeline to accommodate the seller’s needs.
If financially feasible, waive the appraisal contingency if the property is likely to appraise.
4. Offer More Than Just Money
Write a personal letter to the seller explaining why you love their home.
Allow the seller extra time to move out if needed.
Offer to cover some of the seller’s closing costs or fees.
5. Use an Escalation Clause Wisely
An escalation clause automatically increases your offer up to a set limit if other bids come in higher.
This can help you stay competitive without blindly overbidding.
6. Work with an Experienced Real Estate Agent
A skilled agent can negotiate effectively and provide insights on winning strategies.
They can also identify homes that may have less competition.
7. Be Prepared to Walk Away
Set a firm budget and don’t let emotions push you beyond your financial comfort zone.
If the bidding war exceeds your limits, be ready to move on to another property.
Final Thoughts
Winning a bidding war requires strategy, preparation, and discipline. By making a strong, well-structured offer and leveraging creative tactics, you can secure the home you want without overpaying. If you’re entering a competitive market, working with an experienced real estate professional can give you an edge.
Scott Sweeney
Your NorCal Realtor
M&M Real Estate
BRE Lic# 01938720
Cell: Call/Text 707-330-2324
About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
Over 100 Families Served
Top 5% Producing Agent
Buying & Listing Specialist
Contract & Negotiation Ninja
CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
Reach out to SweeneySells today, and take the first step towards your real estate goals!
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