{"id":71591,"date":"2021-02-22T09:12:00","date_gmt":"2021-02-22T17:12:00","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=71591"},"modified":"2023-05-02T15:34:00","modified_gmt":"2023-05-02T22:34:00","slug":"win-real-estate-bidding-war-without-highest-bid","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/win-real-estate-bidding-war-without-highest-bid\/","title":{"rendered":"5 Ways to Win a Real Estate Bidding War without the Highest Bid"},"content":{"rendered":"

You may shortly find yourself in a real estate bidding war if you\u2019re one of the many <\/span>first-time homebuyers<\/span><\/a> looking to buy in competitive markets like <\/span>Austin, TX<\/span><\/a> or <\/span>Denver, CO<\/span><\/a>. You may also think the only way to win the house is by putting in the highest offer. While this sounds like the right and possibly only strategy, you might be surprised when a homeowner selects a lower bid.\u00a0<\/span><\/p>\n

Winning a real estate bidding war doesn\u2019t always come down to price – there are actually many other tactics that are extremely effective. All-cash offers, pre-approval letters, and flexible timelines are all strategies that can beat out the highest offer. When you\u2019re planning your bidding strategy, consider the following tactics to help make your offer stand out amongst the competition.<\/span><\/p>\n

\"\"<\/p>\n

1. Get pre-approved for a mortgage<\/span><\/h2>\n

One of the first steps you should take towards purchasing a house is obtaining a pre-approval letter. A pre-approval letter states that a lender is willing to lend money up to a certain amount. These are typically acquired from a <\/span>mortgage company<\/span><\/a> or a bank.\u00a0<\/span><\/p>\n

Getting pre-approved is almost always beneficial when <\/span>buying a house<\/span><\/a>, but especially if another buyer puts in a large offer during a real estate bidding war, but isn\u2019t pre-approved. By having this letter, you can show the seller that you\u2019re a qualified and serious buyer, even if you don\u2019t have the highest bid. Pre-approval letters typically have an expiration date of 30 to 60 days, however, they can be updated with reverification of your information.<\/span><\/p>\n\n

 <\/p>\n

2. Go in with an all-cash offer<\/span><\/h2>\n

We\u2019ve all heard the term \u201ccash is king,\u201d and when it comes to real estate bidding wars it’s no different. Having cash on hand means that mortgage companies don\u2019t need to get involved, escrow closes faster, and you don\u2019t have to worry about appraisals. All-cash offers show the seller you mean business and are ready to buy the house today.<\/span><\/p>\n

3. Provide a flexible timeline<\/span><\/h2>\n

Flexibility around specific details in real estate transactions is nearly as good as offering the highest bid. Sometimes sellers need more or less time in the home than the typical 30-day closing period. If you are not in a rush to move, be flexible with your closing timeline and let the seller decide when works best for them. This can go a long way in a real estate bidding war especially if competing offers come in with hard deadlines.\u00a0<\/span><\/p>\n

\"\"<\/p>\n

4. Eliminate contingencies during a real estate bidding war<\/span><\/h2>\n

Of course, there will always be contingencies when buying a house. Home inspections, financing, and appraisals are all important, however, you want to make sure that you aren\u2019t overwhelming the seller by asking for too much. If you want to be the victor in a bidding war without the highest offer, you should remove as many contingencies as possible. However, it\u2019s important to note that as you eliminate contingencies, you\u2019re effectively taking risk off the home seller (which is why it\u2019s a winning strategy) and putting it instead on yourself.\u00a0<\/span><\/p>\n

5. Write a personal letter about why you are the perfect homeowners<\/span><\/h2>\n

Almost all sellers want to make sure their home is going to people that will take care of it and love it as much as they do. Including a personal <\/span>offer letter<\/span><\/a>, complimenting recent renovations, stating why you would be the perfect caretakers, and sharing what you love about the home, will help you stand out. It won\u2019t always make a major difference, but this personal touch can help compliment an offer even if it\u2019s not the highest bid.\u00a0<\/span><\/p>\n

Real estate bidding wars can be extremely competitive, but implementing these five strategies can help your offer stand out. You should also consult with your real estate agent, as they may have additional insight on how to make your offer more attractive. In the end, the sellers are going to choose the offer that\u2019s most attractive to them, so do whatever you can to make your offer the best on the table.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

You might be in a real estate bidding war and think that putting in the highest offer is the best way to win. However, there are many other tactics and strategies to consider that may just beat the highest bid.<\/p>\n","protected":false},"author":544,"featured_media":71592,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[34276,10756],"tags":[13097,4007,14615],"coauthors":[34286],"class_list":["post-71591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","category-featured-post","tag-bidding-wars","tag-home-buyer-tips","tag-millennial"],"acf":[],"yoast_head":"\n5 Ways to Win a Real Estate Bidding War | Redfin<\/title>\n<meta name=\"description\" content=\"You may think that putting in the highest bid is the best way to win a real estate bidding war. 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