Buying a home is a huge decision and finding the right property is just part of the struggle. If the property is popular, you might not be the only interested party and you could end up in a bidding war with others who want to buy it too.
So how do you stand out in a competitive property market? Is it just a case of offering the most money or are there other factors involved?
How to beat the competition and get your offer accepted
Mortgage broker Mojo Mortgages asked its in-house experts to share their top strategies for helping someone stand out in a property bidding war.
These top tips could help you make a winning offer and secure your next home.
- Always lead with your strongest offer
Offer your best price at the start. If someone goes higher, you’ll know it’s time to walk away. This can be less stressful than bidding in small increments, which can sometimes lead to buyers being tempted to go over their budget.
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Do, however, make sure you can afford the house so you don’t have your mortgage application rejected. It’s important your house-buying budget is realistic, and you’re financially ready before putting in an offer.
- Get a Mortgage in Principle
Before house hunting, you should apply for a mortgage in principle (MIP). This is a document that indicates how much you might be able to borrow to buy a property. While it’s not a guarantee you’ll be able to get a mortgage for the same amount, it does show sellers and estate agents that you’re a serious buyer. This can put you in a great position if you’re up against other prospective buyers.
- Bid an odd number
Offering a more precise figure is more likely to be accepted, according to some psychological studies. Sellers might place more value on a specific number rather than a round number, which suggests you’ve chosen a figure from random rather than working out those numbers.
So, for example, instead of offering a nice neat £250,000, consider giving £250,500 a try instead. Add on top of a precise figure rather than falling below it, just in case another buyer offers that nice round number.
- Be flexible on timelines
It’s not all about the money. Many sellers would love a stress-free, straightforward process!
If you can, find out why and when they want to sell. This could help you to offer flexibility, which may well persuade the seller to choose you over other buyers who may have their own set timelines in mind.
For example, the seller might be keen for a quick sale or they might actually need extra time to move out and be looking for a more patient buyer. Being chain-free can be advantageous as you won’t have any additional pressure from your own buyer to worry about.
- Be responsive in communicating
Waiting around a week or two to put in an offer will likely see you lose out to another buyer who’s ready to make a quick decision. Of course, don’t rush into your decision, but don’t ghost the seller either. Poor communication is a big red flag. After all, this gives the seller an idea of what it’ll be like to deal with you throughout the process.
It’s also worth remembering that estate agents play a key role so, while they won’t be able to influence the sale, it can’t hurt to be polite and pleasant to deal with.
- Sell yourself
Some homeowners may be more motivated to sell to a buyer they connect with. So, when providing your written offer to the estate agent, consider including a short note explaining your position and why you want to buy the house.
Stick to the facts and highlight why you’d be a great, reliable buyer. For example, if you’re a first-time buyer or coming to the sale chain-free, make sure your seller knows about it.
- Be a ‘ready-to-go’ buyer
If you already own a home, you’ll have a better chance of having your offer accepted if it’s ‘sold subject to contract’, which means you already have a buyer lined up. It’s not unheard of for some buyers to sell up and move into rental accommodation before searching to improve their chances of securing their perfect home, though this comes with its own risks.
If you’re a first-time buyer, you have a natural advantage here as you’re not part of a chain. Sellers love a smooth sale, and a chain-free buyer reduces the risk of delays or deals falling through.
Emily Smith, Mojo’s mortgage expert, added: “Keep house hunting even if you’re in the middle of a bidding war. It’s so easy to become fixated on a great property being ‘the one’ which can lead to you going over budget to try and secure it. But there are plenty of other homes out there! You might find another property you like just as much, with less competition.”
