When the real estate market goes from having a populous inventory to only a handful of options that match your criteria, ugly bidding wars break out. These situations are not ideal for home-buyers, so when it does happen it’s important to have a strategy.

Here Are Five Tips To Avoid a Bidding War

Do Your Research

First and foremost, if you’re taking out a loan make sure you have a mortgage pre-approval. The next most important step is to make sure your offer is fair and backed by proof of the market. You should know if the home warrants full price or lower than asking. If the home is fairly priced, don’t play games. Offer what’s fair, if there is a high interest in the home than it may be worth offering more than asking. Of course, only offer what your mortgage can cover but be warned lower than asking offers tends to open the flood gates to bidding wars.

No Contingencies

A desirable buyer will have a home inspection done prior to making an offer. Sellers are less inclined to go with a buyer who wishes to be compensated for small or minor issues. Remove minor contingencies and make your offer as clean as possible.

Be Open

If you want to win over a seller with your offer, be flexible with their terms. Don’t pressure them to be out by a certain date and if absolutely necessary see if they’d be willing to rent from you. If you show compassion with the sellers and emotion for the home, you’re more likely to win the property and prevent the sellers from offer shopping.

Be Willing To Move Fast

Know what you want, have your down payment ready, your pre-approval finished and your budget restrictions agreed upon. When you find the home you want and you have the sellers attention, you have to move fast. It’s not uncommon for a hot home to get listed and sold in the same day. Be decisive.

Get Personal

Yes, the most money offered is usually going to be the final deciding factor. However, a humanizing touch with a personal letter in a situation where all of the offers are relatively close, could be enough to win over a seller. A lot of people have a strong emotional connection to their property, especially if it’s a property they raised a family in, spent 10+ years in or built it from the ground up. Get emotional, show your love for the home and who knows? You may end up a happy new homeowner.