I was able to get a house last week through a bidding war without raising my bid. What I did was raise the earnest money amount. I also tightened up the dates for various aspects of the contract. This let the seller know that I really wanted the house and that I was not planning on screwing them over.
I raised the earnest money amount from $1,000 to $4,000. I still have the same options to get out of the contract, but I have more “cash” invested. I have posted about how doing cash offers can also make an offer more attractive to sellers.
I also moved up the dates for the inspection and the mortgage application. This lets the seller know that I am getting things done now, versus making them wait to find out wether I am going to buy the house. The seller will be able to put the house back on the market sooner if I back out of the house.
I might not have had the highest bid, but I have the best offer. Keep that in mind when writting up contracts that are in bidding wars. The offer is what matters, not just the offer price. I have seen deals go through for $600,000 less because the inspection period and the types of inspections. It is not that people have things to hide. Sellers want to sell, not be drug through the mud by buyers. Horror stories can be used to your advantage.
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April 2nd, 2008 at 8:58 pm
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