How to Win a Bidding War

 I have seen many properties go in to a multiple bid situation. As a Buyer, this is frustrating as it forces you to bring your best offer right away--even then you may not get the house. For Seller's, this represents a dream situation of having multiple people driving up the price on your home. Below are some tips to win them as a Buyer.

1. Crunch the Numbers
   One of the most important elements in the process of buying a home, particularly if you enter a bidding war, is getting pre-approved by your bank or mortgage company so you know exactly what you can carry - and how high you can go in your offer.
   When in a bidding war, make sure you know how much the house is actually worth. Many Seller's will purposefully list their house lower with the intent of driving up the price. If full price or even over asking price still represents good value for the home, feel confident in bidding more. 
2. Do your Homework
   Buying a property is the most expensive financial decision most people will ever make in their lifetime so spending time to research the neighbourhood is so critical. There is so much emphasis on house inspections, and there should be, but the same amount of care should also be spent checking out local schools, transportation links, parks, crime rates, medical offices, family activities, seniors programs, daycares and even future housing developments.
3. Nail the Timing
   I try to get into properties as soon as it comes out to avoid the weekend open house competition -  or before they are on MLS. By beating out the weekend competition, I might not have to enter into a bidding war. There’s no rule that states that you can’t make an offer before the official offer date; in fact the listing agent has a duty to present all offers regardless of how good they are.
4. Pick the Right Agent
   Having an agent who has your best interest in mind is key to winning a bidding war. Your job as a buyer is not to seal the deal, it’s your agent’s job and they need to know what your limit it is – and respect it. Your agent should educate you on the value of the home. Knowing it's value is critical in coming up with an offer price that you can be confident in.
5. Keep your offer clean
   Surprisingly, not everyone is after top dollar when it comes to selling their home. I’ve put in a lot successful offers that may not have been the highest, but they were the cleanest. A clean offer with pre-approved financing, especially in a multiple offer scenario, shows the seller that you are serious.  Conditional sales and offers that are contingent on financing just don’t fly when there are other offers on the table.
   
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