When a Manhattan home is priced very well and is very desirable chances are there may be multiple offers even in a softer seller’s market. You need the right tactics to try win!
Here Are My 6 Tips For Winning A Real Estate Bidding War
1. Know the comparables on the market in the area. Look at active, pending and sold listings. Your broker will run a detailed comparable pricing analysis. You don’t want to risk overpaying when you are in a highly emotional state and regret paying too much. Choose a maximum price that you won’t exceed.
2. See if there are other non-financial things that you can offer that may be helpful to the seller’s situation. Perhaps the seller would like to close much further out. Or maybe he would like a lease back for a period of time Waive contingencies such as home inspection or financing contingencies. Of course, discuss this with your broker and attorney before taking waiving any contingencies.
3. Offer to pay all cash if you can. This is an advantage because you can facilitate a faster closing. If you can’t pay all cash put as much down as you can. This will make you a stronger candidate especially if you are buying a co-op.
4. Include a personal letter with your offer is a great way of positioning yourself in a bidding war. Tell the seller a bit about yourself and why love their apartment and their building. This emotional appeal may influence the seller to take your offer.
5. Offer to pay part or all of the seller’s flip tax. That can often win a bidding war.
6. Lastly how you and your broker behave during a bidding war can give you leverage. Keep the deal moving forward efficiently and with least amount of stress. The seller may end up taking your offer because he or she feels you are easier to deal with than the other bidders.
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