"A bidding war is a real estate term for when a seller receives multiple offers on their home in a short amount of time. Unfortunately, it also means the seller can wait to see whether buyers are willing to raise their offers-and by how much-along with other concessions to make their offers more attractive. It's a tight spot for a homebuyer. However, with representation from an experienced real estate agent, you can navigate the bidding war process wisely and win the house."
"You might not be able to match a builder's cash offer dollar for dollar, but you can make your offer stand out in other ways. Get fully underwritten before you shop. A pre-approval is good, but full underwriting shows sellers you're serious and ready to close quickly. * Shorten contingencies when possible. If your lender is solid and you're confident in your inspection, tightening timelines can make your offer more appealing. * Offer a higher earnest money deposit. It signals financial stability and commitment."
Builders often win bidding wars because they can pay cash and close quickly, but buyers can still compete by strengthening offers beyond price. Buyers should secure full underwriting before shopping, shorten contingencies when feasible, and offer larger earnest money deposits to signal commitment. Presenting financing as fast, reliable, and equivalent to cash improves competitiveness. Talking directly with the seller can create advantages when possible. Partnering with an experienced local agent provides a major advantage in teardown markets. Flexibility on contract terms and clear, prompt communication with lender and agent increases the likelihood of prevailing in multiple-offer situations.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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