Keller Williams South Bay
Stephanie Arbolida, Keller Williams South BayPhone: (310) 892-5940
Email: [email protected]

Three Tips for Winning a Bidding War On Your Dream Home

by Stephanie Arbolida 11/24/2019

In a competitive housing market--like the one we have today--sellers are fielding numerous offers, especially in desirable urban and suburban hubs.

If you’re hoping to buy your first or second home, it can be tough to make offer after offer with no success.

However, there are some things you can do to help ensure your time house hunting is well-spent and to increase your chances of getting your offer accepted.

In today’s post, I’m going to give you a few tips on how to win a bidding war on your dream home.

All-cash offer

The most effective way to ensure that your offer is accepted is to make it in all cash. Cash offers drastically simplify the real estate transaction process, making things easier on the seller.

Most buyers, especially first-time buyers, won’t be able to make an all-cash offer on a home. However, people who are downsizing after their children moved out or are buying a retirement home may find themselves in the ideal financial situation to be able to leverage a cash offer.

If that sounds like you, consider a cash offer as part of your bidding strategy.

Waive the financing contingency

If you’re new to real estate contracts, you might be wondering what a contingency is. Essentially, a contingency is an action that needs to be completed before the contract becomes valid and the sale becomes final.

There are a number of different contingencies that can be found in a real estate contract. However, the most popular are for inspections, appraisals, and financing.

If you’re planning on taking out a mortgage to purchase the home, a financing contingency protects you in case you aren’t able to secure the mortgage in time. In other words, you’re not on the hook for a home you can’t pay for.

In some special situations, buyers might decide to waive the financing contingency, signaling to the sellers that there won’t be any hang-ups or delays from the buyer regarding financing the home.

Waiving this contingency comes with risks (namely, being responsible for coming up with the money to pay for the home). However, there are ways to safely waive a contingency.

The most common approach is to get a fully pre-approved letter from a lender. The important distinction here is that your mortgage needs to be pre-approved and underwritten (not just pre-qualified), otherwise you again risk getting denied the mortgage in the last moments before buying your home.

Crafting a personal letter

Sometimes all it takes to win a bidding war is to be the seller’s favorite candidate. Take the time to write them a personalized letter. Explain what you love about their home and why it’s perfect for your family.

Avoid talking about big changes you’ll make. Remember that they probably put a lot of time and money into the home, making it exactly the way they want it, and won’t appreciate you making huge plans to undo their work as soon as they’re out the door.


Using one, or a combination of, these three techniques, you’ll be able to give yourself an edge over the competition and increase your chances of getting your offer accepted.

About the Author
Author

Stephanie Arbolida

 You might be surprised to learn that I’m a third-generation Real Estate professional. I was introduced to Real Estate as young girl as my father, grandmother, stepmom and brother all worked in the Real Estate Industry. All doing something different which made me so versatile in my sales position. Although, I didn't plan on selling Real Estate it wasn’t until I wanted to start a family, that I then realized I should become a Realtor. You can say I've been selling Real Estate almost all my life, if you include all the years, I helped my family. Selling Real Estate truly became a passion of mine in 2015 when I had my first child. I got licensed right before my husband and I found out we were expecting, timing couldn’t have worked out any better for us. Although, I had my license I didn’t sell much for the first couple years. I did enjoy helping friends and family buy and sell Real Estate. In 2018 I decided to sell Real Estate full time. My business changed that year with the help of my family, friends and clients I was able to build a bigger business than I expected. Not only did I create a more amazing business for myself, I expanded and built my team, The Arbolida Group. I was also asked to join some amazing leadership communities and named in the top 20% of Realtors within the Keller Williams South Bay Office. My Keller Williams Office asked me to join The Agent Leadership Council. The ALC allows me to stand out and help build and grow leaders within our office and community. I was also asked to be the Program Director for The Women's Council of Realtors South Bay Network. I am grateful that I have been given a tremendous amount of trust from my family, friends, clients and company. With all the trust I have become the agent that I am. It allows me to build strong and lasting connections with the community and all my clients. I strive to be the best mom, wife, Real Estate professional, leader and role model. I am always learning and ready to go above for my family, friends, co-workers and even more so for my clients. My clients almost always end up becoming amazing close friends and I wouldn’t have it any other way. I love my job and I love nothing more than matching clients with their dream home and completing their dream of becoming a home owner.