So you're looking to buy a house.

You search until you find your absolute dream home, and it's even within your budget. Score! 

You quickly offer the asking price, but then the bomb is dropped – 

We’ve received a higher offer. 

So strap on your boots and call in the cavalry, it's time for a bidding war. 

Not so long ago, the buyer had the upper hand in real estate negotiations. But due to low inventory and high demand, the tides have turned – now bidding wars rage on across the country. 

So, general {{contact.first_name}}, let's talk strategy.

Of course you’ll want to be the highest bidder. But as we’ve seen numerous times throughout history, it is not always the largest army that determines the victor.  

The basis of your strategy should be that with every move you make, you'll want to fit the needs of the seller as closely as possible. 

You can start by shifting the risk of the house's appraisal from the seller to yourself. 

Remove any appraisal contingency clauses from the contract and you’ll see your odds of winning skyrocket – you even can double down on this strategy by “offering appraisal gap coverage”. 

This means that no matter what the house is appraised at, you agree to pay the asking price – and if it comes in low, you’ll make up the difference by means of a higher down payment. 

So how can we further put the seller's mind at ease?

3 words: Cold. Hard, Cash.

Mortgages are too complex for their own good, and issues between the buyer and the lender can cause the deal to unexpectedly go south. 

Offering cash will show the buyer that you are serious, and should ignite a flame of passion in their heart – after all, we are talking about huge physical stacks of money here. 

Already with these two tips you’ll have outmaneuvered your competition, but there is one final way to truly end the war once and for all. 

Write the seller a letter. 

We have to remember that at the end of the day, the armies on both sides of a war are made up of people. 

And people love a good story… 

You have the opportunity here to make an impression, to pull upon their passion, and to evoke emotion deep within the heart of the seller. 

Talk about what you have in common, your enthusiasm for joining the local community, explain how it is the perfect place to raise your kids – there are many approaches that you can take here. 

Follow your instinct and go off of the information that you have at hand. Try to see if you can get into the mind of the seller… 

In the words of the legendary military commander Sun Tzu: 

“Know thy enemy and know yourself; in a hundred battles, you will never be defeated”

P.S.

If you are looking for professional advice or assistance in buying your dream home, we encourage you to come down and visit our office, or reply directly to this email to get in touch with us :)