Best Strategies to Win a Bidding War

June 2, 2022


When buying a home in today’s real estate market, be prepared to pull out every weapon in your arsenal. Most agents are dusting off strategies and techniques they haven’t used since the early 2000s to compete in this competitive seller’s market. “Homes are selling fast and for thousands over list price. Homebuyers need to be ready to move quickly and aggressively when they find a home they love,” shares Davidson Realty President, Sherry Davidson. 


Putting together an offer to sellers? Make it strong! With only a month’s worth of inventory up for sale, more and more buyers are making all-cash offers. Cash sales are attractive because the seller has seemingly no risk of financing problems and they save time with the elimination of the underwriting process. 


Opt for a shorter inspection period or no inspection. Make an estimate of how much necessary improvements will cost and consider them in your offer. For newer homes, waiving the inspection could be a valid tactic, but the buyer must truly understand and be comfortable with it as it could be extremely risky. 


Allowing the seller to rent back the home for a short time is another way to appeal to the seller’s needs. If the seller needs time to find or move into their next home, the buyer can allow the seller to stay for a set period of time and pay rent, usually the mortgage payment, or stay rent-free as the buyer would begin paying the mortgage. Being flexible could be what helps you win a bidding war!


Waive the appraisal contingency. The appraisal contingency allows a buyer to get out of a pending sale if the appraised market value of the home is less than the agreed upon contract price. If the contingency is waived, the buyer agrees to pay the difference between what the bank is willing to lend on the appraised value and the contract price. Waiving the appraisal contingency is clearly an attractive strategy, however, the buyer needs to be aware of the risk. 


A tool many agents are recommending to buyers to win bidding wars is an escalation or escalator clause which states the buyer will pay a certain amount above the highest bid. This clause makes the offer more attractive because it guarantees it will beat the highest bid. Usually, a limit is set on the clause to avoid the buyer overspending.


Footing the bill for closing costs and paying the commission for both sides of the transaction is another way to sweeten the deal for the seller. Additionally, writing a “love” letter could appeal to the emotions of the seller. Trusting your agent to help you select the strategies that work best for your situation is key. 


In this real estate market, be ready and act fast! For expert advice on strategies to catch the seller’s attention and put your offer at the top of the list, contact Davidson Realty today at (904) 940-5000. 

Five steps to prepare for your home inspection

August 22, 2019

Posted by in News

If you have ever sold a house, you know the inspection is an important step to assess the condition of your home. As the homeowner, there are several measures you can take to ensure your home is ready for the home inspector and help you receive high marks on the inspection report.

1.) Make access easy. First and foremost, ensure the home inspector can conveniently access all areas throughout the property. This might include access to an attic, crawl spaces, garage, furnace room, under sinks and storage spaces. If they can’t get to an area of the home, then they can’t inspect it, which could turn into a red flag for buyers.


2.) Start where they typically do—outside. Check your home’s perimeter for structural issues, water damage, cracks, leaks, bug infestations, missing weather stripping, broken locks and so on. Be sure to check the roof, siding, gutters, eaves, windows and doors, as well as the A/C compressor area and outbuildings.

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Realtor Loreal Greathouse Shares Great Tips on the Home Inspection Process

June 18, 2015

Posted by in News

Your offer was accepted and now you have about 10-15 days to get your inspections done depending on how the contract was written. Getting a home inspection is one of the most important steps a buyer can take to insure they are making a good investment and getting a home that is safe for their family. Here are some tips to help you with this process.

1. Don’t be afraid to get a new construction home inspected. We want to believe that all builders do a fantastic job, but with how quickly homes are going up in areas it’s best not to assume your builder or the contractors did everything right. Just because the home passed code and was given an occupancy certificate by the city doesn’t mean there aren’t things that went unnoticed. An inspector is your last line of defense against major defects. Even though your new home will have a builder’s warranty, it’s best to know about any possible issues before the ownership changes hands. Read more

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