In 2017 almost one out of four houses went for above it’s asking price. That’s a higher number than the year before. This shows how competitive the housing market has become for a Manteca home buyer. Because of this, housing prices are expected to continue to go up especially when there are multiple offer situations.
But the highest bid is not always the winner. A bidding war can be a lot more complicated than that.
Some real estate pros try to avoid the term “bidding war” because there usually is not any fighting and it’s not a live auction. Instead of preparing for battle, a Manteca home buyer should focus on getting information and analyzing it to put forth the best offer.
When it comes to selecting a Manteca home offer, price, as well as earning the seller’s confidence, are equally important. Sellers want to think that the transaction will go smoothly and not fall apart.
To do this, there are a few things you can do like offer all cash, waive the inspection and get rid of appraisal contingencies. A combination of these typically is used to get the best results.
Cash, obviously, is king. When all of the other terms are the same, offering all cash nearly doubles your chance of getting your offer accepted. In the luxury market it’s four times as likely to get your offer accepted.
Not every Manteca ome buyer is in the position to make an all cash offer. That brings in the financing contingency which makes your offer dependent on your loan approval. If a Manteca home buyer can waive this contingency , your chance of your offer getting accepted goes up by 58%. It makes your offer pretty close to an all cash offer.
To confidently do this, make sure to get pre-approved for the loan and see if you can get a fully-funded letter from the borrowers to present to the seller. Not every lender can do this so make sure you ask before you commit.
If you don’t have the cash and need a financing contingency you can still win the bidding war. Try writing a personal letter about your circumstances, explaining why this is the home of your dreams. It can create a connection between Manteca buyers and sellers that could sway the decision your way.
This strategy works unless the seller is an investor. In that case skip the letter because they won’t have an emotional attachment to the property.
A waived inspection contingency is almost a requirement when bidding on homes in certain areas. So it is not a way to get a leg up on the competition; it might actually be standard where you are buying. The seller may have their Manteca house inspected before it goes on the market. That helps alleviate any worry about the condition of the property.
If your area is not in that extreme of a competitive market, waiving the inspection contingency can work to get the deal done in about half of the cases of a bidding war. But a Manteca home buyer should understand the risks that come with this strategy.