If you have searched all the available homes in California and have found a home you are interested in, then you have done one of the most difficult parts of buying a home. However, if there are other parties involved, then you might end up in a home buying bidding war. Hopefully, you are working with an agent at Berkshire Hathaway HomeServices who can help you through this process. If not, contact us at (310) 373-0021 or follow the advice below.
Make Sure You Are Providing the Best Possible Buyer Package
The truth is that all transactions are unique, and the perfect buyer package for one property will not be the same as for another. See if you find out what the seller wants and create a package that appeals to that. While it might be money, it is also possible that they want someone who can close quickly, who will wave contingencies, or who can be flexible in a different way.
Know that Cash is King
Everyone would like to be in a position to buy a property in cash, but this is nothing more than a dream for many. However, if you are able to offer all cash, then you will be much more likely to win the bidding war. When the seller sees an all-cash offer, they see a transaction that will be absent of many of the hurdles that other transactions often include.
Remove Any Contingencies You Can
Most sellers are looking for a buyer who has no contingencies. They want a simple process that will be over sooner rather than later. When they see a list of contingencies, they might be willing to accept a slightly lower bid just to avoid the hassle. Talk to your real estate professional to find out which contingencies you cannot do without and which ones you might decide to be flexible with.
Consider an Escalation Clause
The seller wants the most possible money for their home, and you want the pay as little as possible while still winning the bidding war. This can seem impossible, but an escalation clause makes it possible. The way it works is fairly simple: you put in an offer for a certain amount and agree to increase the offer by $X,000 up to a certain amount. If another buyer outbids you, then your offer automatically increases.
For example, let’s say the home is listed at $500,000, and you are willing to pay up to $550,000. You could offer $500,000 with an escalation clause of $5,000 increments up to $550,000. This would mean that if a competing bid comes in under $550,000, you automatically match it. If a bid comes in higher than you are willing to pay, then you are not on the hook.
At Berkshire Hathaway HomeServices, we have many years of experience helping clients not just find their dream homes, but get them. Call us now at (310) 373-0021 so we can help.