Massachusetts has such a hot market, that most homes sell quickly and with multiple offers. Many home buyers express frustration as they continually submit offers unsuccessfully. It’s taking much longer to find a home these days, during which time, home prices continue to rise. So, what can home buyers do? Buyers who are successful have learned how to win bidding wars for Massachusetts listings. Here are some of their techniques.
1. Remove Contingencies
The fewer contingencies in your offer, the better your chances will be of getting it accepted. Eliminating contingencies is one successful strategy. If you have a home to sell, get that home under agreement first! This way, you can eliminate the home sale contingency. Some buyers are even removing inspection contingencies. This is a big plus for home sellers as it eliminates a roadblock and additional negotiation point. This does come with some risks, so use this strategy with caution.
2. Include a Personal Letter
Writing a personal letter to the seller can make your offer stand out. Some sellers have an emotional attachment to their home. Knowing some personal information about you, as a buyer, can help you tap into those emotions. Otherwise, sellers really know very little about any of the buyers and base their decision solely on numbers and dates in the paperwork.
3. Give Sellers What They Want
Sellers typically have a preference on closing date and other terms. Ask about their preferences ahead of time. This way, you can give them exactly what they want in your offer.
4. Tighten Up Dates
Dates are very important when it comes to offers. Sellers normally prefer that inspections take place as soon as possible so that the P&S agreement can be signed. Short mortgage commitment deadlines are also more appealing. When it comes to setting dates in your offer, shorter timelines can make your offer look more appealing.
5. Use an Escalation Clause
An escalation clause essentially states that you would be willing to go a certain dollar amount above the highest offer. There’s also normally a cap on how high you can go. Assuming that your cap is not below the highest competing offer, an escalation clause can give you an edge. Keep in mind, however, that your starting offer should still be competitive. Don’t lowball your offer but include an escalation clause. That would not be received very well by a seller. A well written and positioned escalation clause can help you win bidding wars.
More on How to Win a Bidding Wars for Massachusetts Listings
The above techniques are just a few ways that can help you win bidding wars for Massachusetts listings. Every listing has a unique situation, so understanding that will go a long way in identifying other ways to make your offer more appealing. Discuss different approaches and techniques with your agent. He/she will help you maximize your potential for success. The sooner you buy a home, the less you are likely to spend (given that home prices are continuing to rise). With a good technique and a little bit of luck, you’ll get an offer accepted and can start enjoying the benefits of home ownership.