Q. How Do I Win A Competitive Bid?

JOHN RICE ASSOCIATE BROKER | REALTOR

Q. How Do I Win A Competitive Bid?

A: In today’s market this question is coming up more and more often.  As a bit of back ground – let’s set the stage: Imagine you have found the “prefect home” and you are all set to place your bid on it. However you are not the only one.  You feel that others may also think its their “perfect home.” It is likely in this case that several buyers have decided to place a bid on the very same property you want to claim as your own.  Now what? What’s the best way to “Win the bid?”

Each property is different but here are some general points in a competitive bid:

First consider some factors:

1. Financing: What type of financing are you approved for? Typically speaking sellers prefer cash, a close second is conventional financing. Are you in a position to make an offer with either of these on your side?  If financing what is the most you could put down? Often to a seller the more you are willing to place down the stronger they view you as a buyer.  Side note about closing costs: Closing costs are an expense a buyer pays for.  Asking a seller to “cover your closing costs” impacts their net.  The strongest offer you can make is to find a way to cover your own closing costs.

2. Keys: What is your time frame for getting keys to the home.  Are you able to wait? If so – this could really help you be in a great position.  Many times in today’s market the seller needs time to move into their new home.  If you are able to wait (or are willing to) make mention of that in your offer.  Give the seller the possession time they are requesting.  Sometimes buyers charge the seller rent for their time in the home after close – but you could consider waiving that fee or reducing it – again gaining favor over others.

3. Contingencies: Items such as survey, inspections other items are important to ensure you understand the home you are purchasing. It is very common for a buyer to request time to have the home inspected, and to obtain some type of financing.  Not very many buyer will waive inspections – and its not something I recommend.  However from the sellers perspective if an offer comes through with no inspections – that offer has one less contingency than the rest.  A survey is often a very good idea to understand the property boundaries and potential easements.  Protecting yourself is important but certainly you can write the offer that has you paying for the survey instead of the seller.

4. Price: We are speaking about price last, because frankly its one of the top things people consider.  But price doesn’t always win.  Its always a big factor but the about #s 1, 2 and 3  when written well will put your best foot forward in combination with price.   In today’s market it is not uncommon to have prices go over and above the listing price on the home.  Sometimes as much as 10% or more.  So write strong (high) and write to what you feel is your top offer.

5. Timing – if you like it – don’t wait! This is more a tip than anything else – if you like the home and it feels right – put in your offer.  Its better to take action then wait in today’s hot market.

The unique thing about a home purchase is that literally every piece of property is different and there are several other factors as buyer’s agent we do to ensure the best foot forward for our buyer.  But the above are great areas to concentrate on when preparing your strongest offer.  By concentrating on these before you are in this situation you can be the best prepared.

As we represent our buyers, we are always looking our for their best interest and welcome questions.   Should you have questions about this or any other real estate topic, feel free to reach out.

We would love to hear from you!

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A few words from our clients:
We have worked with John to sell 1 home and buy 2 homes and he is an incredible realtor! He is professional, prompt with communication, honest and patient. We had quite the list for what we were looking for and John was always available to answer questions and get us in to look at a home. His knowledge and connections in the industry made both the buying and selling process go smoothly. We simply cannot recommend John enough!
Chase and Nicole O
It was a wonderful experience working with John. His professionalism, honesty, experience, and knowledge of the Grand Rapids market, helped us in multiple ways. John sold our home in one day, was honest about what we could expect from offers, and was spot on. As we progressed toward finding our new home, again, he was extremely knowledgeable about the neighborhoods, home values, and history of the homes. We are more than happy to say, that he helped us find our dream home within our budget! Anything I needed, he was there through emails, texts, or phone calls. He definitely put in a lot of work for us. Without a doubt, I will ask for his assistance again when the time comes. Thank you John!
T&A Lascari
We can’t say enough good things about John. He is an awesome realtor! We bought our home with his help and just recently sold it with his help. He is highly knowledgeable about the Grand Rapids area market and his expertise and professionalism has shown through both times we worked with him...John is a wonderful communicator and a genuine person. His sincerity has been evident in his commitment to making the purchase and sale experience as seamless and informed as possible. We consider ourselves incredibly fortunate to have worked with John and strongly recommend him without reservation!
E&T VanBuskirk
John Rice is hands down one of the best realtors in the Grand Rapids and surrounding areas. We have utilized him as our realtor on two separate occasions, once over 10 years ago, and again over the last several months to buy/sell. He is incredibly knowledgeable and uses his expertise to help guide you in your choices throughout the realty process. He is professional, kind, has impeccable attention to detail, responsive, and clearly loves what he does. Choose John for your realty needs…he is the best of the best!
Amanda W
Purchased and sold with John, he is: Professional, an extremely good communicator, precise, and acted on our behalf 24/7. He kept us up to date on listings for purchase and preparation advice for selling our home. He was knowledgeable about neighborhoods. Photography for sale of our house was impressive. We were appreciative of the guidance regarding making offers, inspections, when to list our home, writing contracts, detailed review and presentation of offers on our home and being realistic about our purchase of new home. Great experience, Great Realtor.
J&G Junod
We moved to the Grand Rapids area 11 years ago and John was very patient as we found our first home and made the experience absolutely seamless! When we were ready to sell and buy again we knew to reach out to John. As we remembered and appreciated, John is an absolute professional and was and advocate for our best interests at all times during this wild market. We found great value in our new home and he helped us get top dollar for our sale. Grateful to have him on our side though the whole process. You won’t be disappointed!
Lance W
John helped us sell our house when we moved out of Grand Rapids 3 years ago and recently helped us purchase a new house when we moved back. He is very professional and knowledgeable of the area and market. I would recommend him to anyone looking to buy or sell.
S&K Weber
We have worked with John multiple times now, both buying and selling homes. We 100% recommend him and he’ll always be our go-to realtor for any future real estate needs. John is experienced in the industry and well-known and respected. He is extremely professional and knowledgeable, on top of being an all-around nice guy. He is responsive and answered all of our questions along the way. We asked John for several referrals for other services (lender, cleaner, etc.) and we were very happy with all his suggestions. John is honest and will listen to your concerns/opinions. He is never pushy, but gives great advice based on his years of experience. We are so thankful for the guidance we received from John to make our recent home buying and selling experience successful and quick! If you need a realtor, call John.
G&E Webb