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Real Estate Tips and Advice

Winning a Bidding War

If you’re looking to
buy a house right
now, you understand
that it’s a seller’s
market. Inventory is
low and prices are
high, higher than
ever, in fact. So if
you find your dream
home, chances are
you’ll encounter a
bidding war. Here’s
how to win.

know you can walk away having
offered the highest price you can
afford.
Here are some other ways to
ensure you win a bidding war,
according to Rocket Mortgage:
• Add an escalation clause: If
you think you’ll face competition,
but can’t be sure how much
others will pay, your real estate
agent can write an escalation
clause into your offer that
says you’ll pay a certain dollar
amount above any offer up to
your budget limit.

• Drop contingencies:
Contingencies are specific
conditions that must be met
before a sale can be completed.
If you remove any contingency,
you’re making it easier for the
seller to accept your offer.

BE PREPARED

Unless you’re offering all cash,
most agents won’t even consider
a bid unless you’re preapproved
by your lender, preferably one
familiar with the local market.
Get preapproved for a
mortgage before you start
shopping for a home, say the
experts at Rocket Mortgage.
Your lender will provide you with
a guaranteed approval up to a
certain number, allowing you to
bid up to that maximum.
Preapproval letters show sellers
you’re a serious bidder and that
you won’t have trouble getting a

© ADOBE STOCK

REAL ESTATE 101
The Art of Negotiation

Negotiating a home price requires a lot of patience and organization, and sometimes compromise. One crucial element is
using a local real estate agent or Realtor to assist in negotiations. But there are other things to consider before sitting down
at the negotiating table. The experts at Rocket Mortgage put together this “how-to” primer at bit.ly/3xnkB6b.

mortgage to purchase the home.
Without one, a seller might pass
by any offer you might make.

MAKING THE OFFER

In today’s market, houses
are selling for as much as 25%

over asking price, or more —
sometimes with dozens of bidders
driving the price ever higher.
It’s important to go in with
your best offer — even if it’s less
than what you’re approved for.

Traditionally, say the experts, the
best way to win is to offer the
most money. But don’t bid above
what you’re comfortable with.
Going into a bidding war with
your best offer takes some of the
emotion out of the process. You’ll

• Skip the inspection: It’s risky,
because great-looking homes can
hide a wealth of problems. But
bypassing the inspection is one
way to entice the seller if you can
afford the risk.
• Offer all-cash: Many people
don’t have the wherewithal to
make an all-cash offer, but if you
can, experts say your offer can
quickly jump to the top of the
pile. Cash saves both parties time
by skipping underwriting and
shows the seller you won’t have
problems with financing.

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