So, you’ve found your perfect home. The only problem is that the home that is perfect for you also happens to be perfect for several other buyers. In markets with high demand and low inventory, also known as seller’s markets, bidding wars can be quite commonplace. And because of already increasing demand, combined with a year-long halt in construction due to the pandemic, Ireland is in a seller’s market right now. This means that many houses will have multiple buyers attracted to the property, which can hurt your chances of securing the home of your dreams. In this blog, we’ll consider some strategies to ensure you walk away with your dream home
Make the highest offer
The most obvious way to win a bidding war is to simply make the highest offer. Because the seller is usually trying to make as much money as possible, the highest offer usually holds a lot of weight. So, if you can scrape together some extra cash to outbid the competition, you will most likely be the top choice of the seller. However, under no circumstances should you ignore your budget, no matter how much you love the house. Work together with your estate agent to find the middle ground between saving money and securing your home.
Write a personal letter
Writing a personal letter can actually go a long way with some sellers. A personal letter can make a lasting impression on the seller, especially if they are an emotional rather than analytical thinker. If you choose to write a letter, include some personal details. This will help the seller get to know you and make your offer mean more than just a set of numbers. Write about the property details that you especially love, and what you hope to get out of the property. You can tug on the heartstrings of the seller by writing about how their home will be perfect for your children and grandchildren to grow up in, or for you to entertain friends and family on holidays, etc. Also, if your offer is on the lower end for a reason, it can be helpful to explain why. The seller might be moved by a story of medical bills or childcare costs. However, it’s important to note that this strategy has a much higher chance of working with regular people than investors, as investors are usually more concerned with their profit and bottom line.
Pay cash, if possible
If you can afford to skip the mortgage process altogether and pay in cash, this will almost always give you an advantage, especially if the seller wants to make a deal as soon as possible. First of all, it shows you are a serious buyer, and that you can and will take the home as soon as possible. All-cash deals also skip a lot of time and potential hurdles in the mortgage process. All too often, home sales fall through due to issues between the lender and the buyer, leaving the seller scrambling to make another deal. A cash offer skips all these roadblocks and third-party problems, such as a lender discovering the buyer’s low credit score at the last minute. For all these reasons and more, cash offers usually jump right to the top of the pile for sellers.