Tips and Tricks for Winning a San Diego Bidding War

While a San Diego bidding war is a good situation for a seller it is something that a buyer should avoid at all costs.  These types of scenarios can cause a buyer to offer more than they would in other circumstances.   

If a bidding war is the only option for San Diego home buyers, be sure to keep these tips in mind in order to help win against the competition.  

Cash Always Wins

While an all-cash offer is not guaranteed to be accepted it is much more appealing than a San Diego buyer that is using a lender.  When going against other San Diego buyers that must use a mortgage, a cash offer is an easy win.  Sellers prefer a cash offer because there is less risk of the deal falling through.

In most situations, a cash transaction is simple and quick.  home buyers that are using all cash can forgo their need for an appraisal and inspection.  While they may still want to pay for these extras it will not be required to complete the sale.   

Contingencies

Contingencies can be a big pitfall for San Diego sellers.  They are the worst case scenario and most sellers will try to avoid offers that have contingencies connected to them.  

Some contingencies are put in place to protect the buyer in case something does not go as planned during a transaction.  By not putting contingencies on an offer a San Diego buyer is increasing their chances their offer is accepted but will also increase their chance of losing out on money if the deal goes south.

A Personal Letter

A personal letter can be a great way to appeal to a San Diego seller if the buyer cannot offer more money or does not want to forgo contingencies.  This letter outlines the family that is making an offer.  It is meant to tug at the heartstrings of the seller in order to feel more connected to that family.  It helps a seller feel like they are selling to real people instead of only thinking about the money aspect of the deal.

Appealing to the emotional side of the process can be a good way to help win against a slew of San Diego buyers.  If a buyer can make themselves become a face instead of a piece of paper it will be easier to get their offer accepted.  For this reason buyers should try connecting with the sellers by sharing the details about the family, interests, hobbies, and even why the San Diego house is a great fit for the family.

Be Flexible

There are some markets that make it difficult for buyers to find a home.  These markets have too many buyers, houses that are priced too high, and a serious lack of houses for sale.  Buyers can feel pressured to do whatever is necessary to get the attention of a seller.  This can often come at great cost to the buyer.

If possible, do not leave out an inspection contingency.  This contingency is important to save a buyer from being stuck with a San Diego home that they cannot afford because the lender has pulled their funding due to inadequate living conditions.  It can also stop them from getting a house that needs more work than they are able to afford.  

A bidding war often spells trouble for the buyer.  A seller will love to see buyers clamoring to get a chance to purchase their San Diego house.  They can expect offers with higher values, a lack of contingencies, and possibly a personal letter. This is why a buyer must consider their options when planning to make an offer on a San Diego house that is part of a bidding war.