How to win a bidding war as a buyer in 2025?
The Spring Market has officially started in Chicago and bidding wars are everywhere in this sellers market. Open houses with lines out the door are indicative of the type of market we’re in right now. With the competition strong, it’s important to go into the buying process with all of the information you need to win. Price will always be a driving factor for sellers but check out the other items you can be sure to include in your offer to help you stand out as a contender for your dream home!
As-Is Condition - An as-is offer is always appealing to sellers as it indicates that you will not be requesting a myriad of credits after the inspection. As-is can sound scary to buyers but there is no need to be scared as you can still request a credit if something major (ie a roof leak that wasn’t known) is discovered during the inspection. You also can back out if you discover too many repairs during the inspection and you will still get your earnest money back. As-is basically lets the seller know you’re not going to nickel and dime them for credits and can be a great way to make your offer stand out.
Preferred Close Date - When you’re getting ready to write your offer, your realtor should be asking the seller’s agent if there is a preferred close date. If you have flexibility on your end, offering the close date that is important to the seller is an easy way to move your offer to the top.
Lease Back - If you have flexibility and you know the seller needs to do a lease back, offering the lease back at $0 adds value to the seller without increasing the price of your mortgage. You will be responsible for the payment prior to living in the home but if you have the financial ability to make it work, this can be a good incentive.
Appraisal Gap Waiver - Another low cost way to make your offer stand out is the include an appraisal gap waiver in your offer. In a sellers market, properties can often sell for an amount greater than they will be appraised for. If you have the cash to cover the gap, then offering the appraisal gap waiver is a way to show the seller your deal will not fall apart and moves you to the top of the list.
Inspection Waiver - I don’t typically recommend including an inspection waiver in your offer because it is important to know what is really going on in a house. If you are going to be doing repairs/remodeling anyways and have a good budget for things that may pop then an inspection waiver could be a good option to make your offer stand out.
Escalation Clause - An escalation clause gives you the option to offer $XX amount over the highest offer up to a certain amount of your choosing. For example, you put an offer for $550k on a house listed for $540k and include an escalation clause of $2k up to $560k. This would mean the sellers agent would give you the option to pay $557k if the highest offer was $555k. Not all sellers accept escalation clauses though so your agent will need to confirm. These clauses are a nice way to make sure you don’t lose the opportunity to pay more on a place you love.
While every deal is different, using one or all of these strategies can help you land your dream home! Ready to start your search, message me today!