Home Buying in Peccole Ranch>Question Details

Trulia Las V…, Other/Just Looking in Las Vegas, NV

What is the best approach to winning a real estate bidding war?

Asked by Trulia Las Vegas, Las Vegas, NV Thu Jan 17, 2013

Help the community by answering this question:


Las Vegas is currently in a hot seller's market and with inventory remaining very low (below the 5,000 mark) deals are getting harder and harder to lock down. You can read a thread about the competitiveness of the current market here:


With that being said, if you find a property that you want to purchase, it is important that you write up a clean, strong offer. Here are some tips to getting you offer(s) Accepted:

1.) Run the CMA (Comparative Market Analysis) and find out an educated estimated value of the property.

2.) Offer a strong purchase price. With homes selling around 10% above apprasisal value you will want to make your offer slightly above the CMA value. Offering less will get your rejected (NOT COUNTERED) 9 times out of 10.

3.) Always submit your highest and best offer the first time. Do not expect to start low and counter to a higher offer. With an average of a dozen offers on a property at any given time, listing agents are now only countering the best offer in front of them and then rejecting the others.

4.) Keep your offer clean. Pay your own closing closts, inspections, appraisals, etc. This will give the seller less items they have to counter. This will also show the seller and the listing agent that you and your buying agent are in tune with the market and it should make the process a smoother deal. When agents/buyers/sellers are not on the same page and in tune with the market it can cause problems once in escrow and the chances of closing the deal decreases drastically.

5.) Write up the purchase contract to purchase the property "As-Is". This means you can still get an inspection in your "Due Diligence Period" and find out the condition of the property. Do not expect the seller to pay for any of these repairs as you are buying the property "As-Is". If the repairs are minor than we advise you proceed and make the repairs yourself once you close on the property. If there are unforeseen major repairs then you can renegotiate the purchase price at that time or cancel escrow and get your EMD (Earnest Money Deposit) fully refunded. Again writing up the offer "As-Is" will keep your offer clean and less things for the listing agent/seller to counter.

6.) Submit your POF (Proof of Funds) or Pre-Approval Letter with your purchase contract so the sellers know you are capable of buying the property.

7.) This step is not a must but it does make your offer a little more competitive. Increase your EMD (Earnest Money Deposit) to slightly above the requested amount in the listing. For example if they are asking for $1,500 EMD give them $2,000. This shows them that you are serious about buying this property and you are willing to put more money down than the other bidders.

8.) Have your agent write an email or cover letter accompanying the offer explaining that you the buyer and them the buyer's agent are aware of the market conditions and have attached a clean, strong offer that includes: and list the items above that you have agreed to only because of the condition of the market ex: higher price, paying your own fees, as-is, higher emd, POF or preapproval letter, etc.

If you practice all of these steps when submitting your offers in the current market here in Las Vegas or Henderson you will have a better success rate of getting your offers Accepted. If you would like my team and I to represent you in purchasing your next home please send us what type of home you are looking for by filling out our Buyer's Form here: http://lvrealestatehelp.weebly.com/buying-real-estate.html If you need Sell your home please fill out our Seller's Form here: http://lvrealestatehelp.weebly.com/selling-real-estate.html

We hope this is informative and we thank you for your business!

Best Regards,
Robert Adams
Founder of The Adams Team at Rothwell Gornt Companies and LVrealestateHELP.com
0 votes Thank Flag Link Mon Jan 21, 2013
The key to being successful when presenting any offer is in making your offer appear better than all others. This can be accomplished by the following:

no contingencies
fast closing
higher than asking price offer
cash deal
1 vote Thank Flag Link Mon Jan 21, 2013
I don't know that there is any "one best approach" other than flat outbidding everyone. Each decision maker will have their own priorities when sorting through multiple offers. Price is the easiest, but a poorly written high bid with a low down payment, low earnest money and a weak pre-approval letter may lose to a well written 20% down with solid earnest money from an agent with a good reputation.
Are you buying from a bank or an individual? An individual or an estate? Personal home or was this an investment property? Did you pick up on any common ties the buyer may have with the seller which, while may not be part of an offer can be offered in a cover letter? (Provided they don't violate fair housing laws of course).
Knowing the seller, their motivation, the listing agent an how to construct a well put together offer can sometimes help overcome some minor price differences.
1 vote Thank Flag Link Sat Jan 19, 2013
No contingencies, fast close, secured financing, closing cost concessions. Good Luck!
0 votes Thank Flag Link Thu Aug 13, 2015
This question is not simple to answer.

We have continual training and discussions in our office with all of our agents on how to strategically write offers, how to negotiate, how to mine for information from listing agents, and how to maintain relationships with agents.

There are so many items to consider when writing the offer, including timing, price, terms, requested seller contribution, offered buyer contribution, ++

"Highest and Best Wins" is true to some extent but is vague. There is so much more to it, and it's truly a skill of a Realtor! You can write and present highest and best the same day it's released and confirm that you've seen the property, or you can write an even higher offer and submit it blindly 3 days after list without seeing the property... in this case, what would be highest and best?

This is one great reason to have a dedicated Realtor on your side that has a great track record of getting offers accepted!!

Also, relationships and reputation make a difference. If the listing agent has experience with you writing offers and not following through, they may be likely to see your offer as week. Or if your reputation is that of a Realtor who knows the market well, you close deals than fall through, and you have great reviews, well that makes your offer that much stronger.

Check out my LinkedIn Profile, you'll see that I'm continually endorsed for my negotiation skills, and feel free to call and inquire about my track record on making offers and getting them accepted, it's impressive. In fact, you should call multiple agents that you are considering; see who picks up their phone, and conduct a brief interview.

Call Me,

Mark, 702-291-8186
0 votes Thank Flag Link Sat Jan 19, 2013
We have our buyers using a, loan focus on buying a new home and do not participate in bidding wars. In an increasing market, cash buyers can pay over current market and buyers with loan can't. Cash buyers can make offer of what they is going to be worth out to 3 to 6 months...loan buyers are stuck with appraisers basing price on comps that are 90 days old. The key is never go to the same side of the ship as everyone else. We represent over 350 investors and manage thier properties. We represent buyers, investors, and sellers. Thanks, Matt and Kim

Matthew D’Ercole
Prominent Realty Group, LLC
Buyer / Seller / Property Management
Cell - 702.501.0973
"A Nation of Sheep Breeds a Government of Wolves".
Website - http://matthewsellslasvegas.las.mlxchange.com
0 votes Thank Flag Link Thu Jan 17, 2013
I won a "bidding war" on a home because my agent was able to find out from the listing agent what were the other bids and how much time was left for the seller to decide. We waited for the last minute and made an overbid, with a take it or leave clause. It worked

. A really good negotiating buyers agent is a necessity in this competitive las vegas market.

David Cooper Foreclosure invesor
0 votes Thank Flag Link Thu Jan 17, 2013
The highest and best offer wins! In addition if your Realtor can convey how much the buyer is attached to the Seller's home and has every intention on closing escrow, this really helps!
0 votes Thank Flag Link Thu Jan 17, 2013
One of the keys to getting your offer accepted by a seller is to have all your ducks in a row.
the offer should be "clean" and not full of unnecessary contingencies. Try to give your best price up front and competitive terms such as a quick close and shorter days for inspections, for instance. You can also have your inspections already lined up ahead to show you can complete them within the time you are promising.
Also, have a pre-approval letter and have the loan broker call the listing agent to confirm and verify your strong financial situation. If you are offering cash, provide proof. A heartfelt letter to the seller is also a good tool to make a good impression. Your agent should present the offer to the seller whenever possible.
0 votes Thank Flag Link Thu Jan 17, 2013
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