The market is hot right now and homes are going quick. Unfortunately for buyers, it is a sellers market. What this means is that the inventory of homes is low, but the number of buyers is high; therefore, sellers have the upper hand. If a home is desirable and priced right it is quite common to receive multiple offers. So what can you do as a buyer to win a bidding war?

You know what they say, money talks. First, if you are able to give a higher offer or higher down payment that is always one of the best options, but what if you can’t? There are a lot of buyers out there right now who have put offers in on multiple homes only to come out empty handed. This is discouraging especially if you are already giving your maximum offer. Here is five tips to help you secure your next home.

1.      Waive contingencies

In a multiple offer situation, contingencies are something that could cause the sale to fall through. If you have a home contingent upon inspections, and the seller receives a very similar offer that waived contingences- chances are they are going to go with the second offer. So if you feel confident in the home and don’t want to miss out, my suggestion would be to waive the contingencies to gain a stronger offer.

2.      Escalation clause

An escalation clause is something that comes in handy during a multiple offer situation. What you will want to determine first is your absolute maximum offer on the home. Once you know your maximum offer, an escalation clause can be written up. This clause will state that your offer will continue to out bid any other offer by a certain amount up until you reach your maximum designated amount. For example, if your max is $150,000 and the home list price is $140,000, your escalation clause may state that you will outbid any other offer by $1,500 until you reach $150,000.

3.      Show you preapproval

I would say this is something you should always do especially in a multiple offer situation. No seller wants to have multiple offers and accept an offer that can’t secure financing. Big no no. So always have your preapproval done and ready to go before you start putting offers in. It will always be a benefit.

4.      Get personal

In a multiple bid situation, there may not be as much discrepancy between offers as you would think. Sellers are human and they may be willing to overlook $1000 difference between offers if they like who is going to buy their home. A home is often the largest investment a person will make, and knowing the next person is going to take care of it gives some sellers piece of mind. Instead of just sending in an offer, include a personal note or video. Talk about why you love the home and how you can see your future there. Be honest and real with people and sometimes that can make the difference between winning and losing the offer.

Hope this helps you get your next home! If you do everything that you can, it is no longer in your hands.. Good things take time, so remember to be patient and everything happens for a reason. Best of luck!