How to Lose the Bidding War, But Still Win the Property

Buying real estate can be a competitive task, especially when there are more buyers than sellers. If your pockets aren’t as deep as others, your offer will probably get rejected a few times. Don’t worry though; you can take this rejection and finally get the home you want. Here are a couple reasons why your initial offer could eventually close to deal.

Use a second offer as plan B

If the seller does not choose your offer, and accepts your competition over price and minor contingencies, it wouldn’t hurt to request them to use yours as a backup offer. Just by asking, you could be number two in line if the other deal falls through.

Just within reach

The moment a seller makes the first move after accepting an offer, they are already in moving mode. They can see an empty house and the moving trucks in the driveway. If the buyer backs out last minute for whatever reason, the seller will probably accept the backup offer to keep the process moving forward.

Chances improve after inspection

There have been numerous inspections that have failed the test, and the buyer walks away because the seller doesn’t want to deal with it. These issues aren’t going anywhere; which plays favorably to you because the seller is more willing to accept the backup offer instead of no offer.

Loan qualifications are tougher now

As the standards for getting a loan rise, some buyers will not qualify, in turn backing out of the deal. This is where you come to save the day.

Make a one month time limit

The longer the transaction process takes, the more likely disagreement is afoot. Set yourself a month time limit for your backup offer to the seller. If their first deal is taking too long to settle, it could bring the sellers eyes over to your offer.

Get first right of refusal

Always request the first-right-of-refusal clause in your backup offer. This way you are not obligated to buy the property, but you will be first in line if the leading deal falls through.

Get terms in writing

Once you’ve finally got the seller to accept your backup offer, get every detail in writing. Make sure they know they are obligated to sell you the house within a specific time period. Without things in writing, they could possibly pull a fast one and not fulfill the original deal entirely.

Good news for you is as the second buyer, the seller legally has to inform you of any issues the first buyer uncovered. It will most likely be the reason they didn’t buy the house. This will tell you everything about the property before hand.

Best of luck!

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