The 3 Bidding War Strategies That Can Help You Buy a Westchester Home in 2022
Look for Homes Under Your Budget So You Can Bid a Little Higher
As you launch your home search, look for homes that are a smidge under your budget. That way, you have some wiggle room to make a competitive offer by bidding over the asking price. A general rule of thumb is to bid 1 to 3 percent over the asking price. If the home is listed at $350,000, you’d bid between $3,500 to $10,500 over.
Be Super Specific in Your Offer
If you want to stand out to sellers as a serious buyer, be specific and thorough with your offer. Look to include all terms, conditions, list all professionals looking to work with, etc. In addition, adding specified timelines will also show the seller that you are serious and looking to make a move.
If you’re a risk taker, you may be able to remove some contingencies to help your offer stick out. But beware: Unless you’ve got a cushion of cash, this can be super risky. Contingencies are the clauses in real estate purchase agreements that spell out the things that need to happen and the conditions that need to be met so that the contract can become a legally binding sale. The contingencies that are most commonly waived are mortgage and property inspections.
The mortgage contingency, also known as the financing contingency, allows a buyer to back out of the contract if they don’t qualify for a loan or fail to secure their financing in a set time. In multiple-offer situations, sellers might favor the offers that waive a mortgage contingency because it could allow them to close faster. Cash buyers can waive the mortgage contingencies and, while risky, some buyers with strong pre-approvals may be inclined to do the same.
In most scenarios, real estate agents also caution against waiving a property inspection, which is an optional step that can uncover costly fixes (i.e. a deck that’s corroding) and allow you to back out of the deal and take your earnest money with you. But, waiving a property inspection (or limiting requests to health and safety fixes only) could make your offer stronger.
“I don’t recommend first-time home buyers waive inspections unless they have some building knowledge or if they have the option to bring a contractor through the showing,” Solo says.
With these strategies in mind, you’ll enter a bidding war armored with some savvy real estate knowledge.
Anas, Brittany. “The 3 Bidding War Strategies That Can Help You Buy a Home in 2022.” Apartment Therapy, Apartment Therapy, LLC., 8 Dec. 2021, www.apartmenttherapy.com/bidding-war-strategies-for-2022-37011998.