5 Ways To Win A Bidding War in Greenville’s Cutthroat Real Estate Market | 2021 Edition

Back in 2018 I wrote this exact title for a blog. Three years later and buyers are STILL finding themselves in bidding wars for houses in decent condition under $250,000. Despite a global pandemic wreaking havoc all around us, homes are still flying off the shelves.

So, when inventory remains scarcer than toilet paper was last spring, how can buyers stand out amongst the pack?

First, before we get started, I’ll reiterate what I said last time: money talks. You can do everything I recommend below, but more often than not the highest bidder will win. If you love a home enough to make an offer on it, you need to be prepared to make the best financial offer you can afford to make. Keep in mind, your real estate agent should educate on if you’re overpaying for a property since you don’t want to run into appraisal issues down the road.

Pre-Approval and the Importance of a Quality Lender
This is the very first step you should take before beginning your home search. You simply cannot purchase a home without one. A mortgage lender/broker will walk you through understanding the initial steps of getting a loan. They should have established a solid communication between you and your real estate agent to make sure everyone is on the same page. Communication is essential for the smoothest possible transaction.

Ask your loan officer about getting pre-approved instead of pre-qualified. Pre-qualifications will give you an /estimate/ of what your purchase price will be and pre-approvals will determine the /exact/ amount you can afford. If you’re pre-approved while other bidders are only pre-qualified, you will potentially appear to have stronger borrowing power to listing agents and sellers. Not only that, it can allow you to close faster.

P.S. Please consider using a local lender — one that you can actually reach outside of bank hours. If you’d like recommendations on some awesome local lenders I’d be happy to give you some!


Determine what you NEED vs. your WANT
Save yourself and your Realtor time by understanding what you NEED in a home that can allow you to live the lifestyle that you live. It’s very easy to confuse what you need versus what you want, especially when making a decision as big as purchasing a house.

So, before you go house hunting I recommend sitting down with a piece of paper and writing down what your needs are and what your wants are. Think about it, is the pink bedroom ACTUALLY a deal breaker?

Doing this can provide clarity for yourself and your Realtor and help you make decisions faster -- and ultimately get your bid in before anyone else!


The Fewer Contingencies The Better
Sellers want to know that you can close — and adding a lot of stipulations to the contract can be unappealing for them. So, if you have the ability to make your offer more enticing by limiting contingencies you might get a leg up against the competition.

Thinking about selling your house? There are buyers on every corner.

For example — if after seeing the home you feel that it is in good shape, keep your inspection period short and don’t split hairs over minor repairs. If the home is in REALLY good shape, consider making your offer as-is. Do NOT do this without having your Realtor explain what this means for you first.

At the end of the day, you have to do what’s best for you and your situation.

Ask What the Sellers Are Looking for
If after you walk out of the house and you know you’re going to make an offer — have your Realtor call the listing agent.

Have your agent inquire about the seller’s motivation for moving. Are they downsizing? Relocating to another state? What could you do to the contract more attractive to the seller? If they already have a moving date set, maybe they don’t need a quick close — not everyone wants to scramble to pack for a 30 day close!

Doing this makes your offer come across as serious to the listing agent and finding out what’s important to the seller can ensure it’ll be a win-win for both parties.


Write a Letter to the Seller
Buying a house is often an emotional decision. You’re spending a lot of money on a home that you’ll be creating memories in for years to come. Writing a letter to the seller explaining your situation, why you love their house, and how you plan on making it a home for your family can make your offer unique. Perhaps you share a love for the same sports team, or you grew up in the same part of the world. Finding common ground on a relational level is what can help you win a bidding war even if you aren’t able to compete financially with other offers.

You do want to avoid being over dramatic. “Woe is me” sob stories may seem forced or insincere. Simply telling them why you love their home and thanking them for their time can leave a lasting impact on the seller.


So there you have it…
There are so many other small steps you can take to get your offer to the top of the stack. Ask your realtor about these steps or other strategies they may have to help you compete in this dog-eat-dog market. Don’t get discourage if you lose a couple, with enough patience you WILL find the perfect house.