When you’ve set your heart on a property, the last thing you want to do is get into a bidding war with another prospective buyer.
The uncertainty and potential stress on your finances can become all-consuming and, for many buyers, this erodes the initial delight of finding their dream home.
You need to keep a cool head. If the emotion of competition and desire to win takes hold, remind yourself that there will always be other properties to fall in love with and buy.
If someone with deeper pockets outbids you, it’s not the end of the world. But there are several strategies to deploy in these situations to avoid a money fight and still seal the deal.
These include:
- Find the motivation to sell – Why does the seller want to leave such a fabulous home? Sometimes, they are selling under the pressure of a deadline because they have a new job. Or the sale is related to a deceased estate or a divorce, in which case everyone wants to see the back of the property. Find out the seller’s drop-dead sale date, and promise that you’ll have everything wrapped up by then. This will be greeted with relief and put you in a strong position with the seller.
- Compress the inspection period – Offers are always made on the contingency that the home passes building and pest inspections. It takes time to organise these, so give your word that you’ll arrange them as quickly as possible. Even if the seller isn’t on a deadline to move, they’ll be grateful that they’re not hanging around for weeks while contractors organise themselves.
- Don’t wait for loan approval – Most offers are based on the condition that mortgage approval is forthcoming. This can take a week or more to come through, and during that period, the seller is on edge. If you’re confident of your financial position and the value of the home, you can drop this contingency. This should put you ahead of the pack. (But don’t do it unless you know you can cover it)
- Write a letter – This is a very personal approach. Homes are often full of memories, and sellers can be influenced positively if they believe the property is going to a person or family who’ll emotionally value the home as much as they do.