If you’re one of the many first-time homebuyers scouring the market these days, you should be prepared for the likelihood of entering a bidding war, as most houses on the market today receive multiple offers. This can be a daunting prospect. You may think that the only way to win in this situation is to be the highest bidder, but that is not necessarily the case. 

There are many factors that sellers take into consideration when choosing to accept an offer. Certain strategies, such as pre-approval letters or all-cash offers, can give you a leg up over the competition. Even if you’re not the highest bidder, here are some strategies that’ll make you stand out. 

Pre-Approval

Obtaining a pre-approval letter from a lender should be one of the first steps you take when buying a home. A pre-approval letter states that an institution, such as a specific mortgage company or bank, is willing to lend you a certain amount of money. This shows sellers that you are serious about purchasing a home and in a great position to do so. When bidding against a buyer who is not pre-approved, this letter gives you a notable advantage, even if your offer is not as high. 

Cash

Probably the only thing better than obtaining a pre-approval letter is not needing one. An all-cash offer is extremely appealing to sellers, as mortgage companies do not need to get involved and closings are expedited. If you’re able to make a cash offer, do it! This shows sellers that you’re ready and able to buy the house today with as little hassle as possible.

Flexibility

Being flexible is a great strategy in a bidding war. If you don’t need to move immediately, consider offering the seller a flexible timeline instead of the typical closing period. This can take stress off of the seller and eliminate one worry from their moving process, making your offer that much more attractive. 

Contingencies

Every offer is going to have some contingencies, such as home inspections and appraisals. While certain contingencies are essential, try not to overwhelm the seller with too many unnecessary ones. Just keep in mind that as you remove contingencies, you take risk off of the seller and put it on yourself. If you’re willing to take that risk, though, this is a winning strategy.

Don’t let today’s competitive real estate market intimidate you. Even if you are unable to make the highest bid on a home, you still have a chance when you use these tips to make your offer more attractive to a seller. Put yourself in their shoes and be flexible, and your offer is sure to stand out from the rest.