Despite the ongoing COVID-19 pandemic, the real estate market remains smoking hot. While this is good news for sellers, buyers are often faced with the burden and uncertainty of having to engage in a bidding war in order to snag a property. When looking for homes for sale in Sherburne County, you will enjoy more success if you arm yourself with the following tips needed to win any bidding war.

Know Your Budget and Get Pre-Approved: Many prospective home buyers make the mistake of entering a bidding war without a full understanding of how much home they can actually afford. This can lead you down a road of trouble if you are not careful and end up bidding too much. Once you know how much you can afford, you can then get a letter of pre-approval from your lender. This pre-approval will make you a more attractive buyer to the seller because it will prove that you have the financial resources to follow through with the purchase.

Boost Your Deposit or Earnest Money: Another way to send the signal to the buyer that you are serious about this home purchase is to offer more than expected for your deposit or earnest money. Your agent will be a good resource when you are deciding how much money you should offer as a down payment. While a typical deposit may be only 1% of the purchase price, upping this number to up to 10% is a good way to make yourself stand out among other bidders.

Offer More Money: The best way to win a bidding war is to simply offer more money for the home. At the end of the day, a seller simply wants to get top dollar for their house. Coming in with the highest bid will ensure that you are in the best position to be considered above other potential buyers. It is important to note that you cannot take out a loan that is more than the appraised value of the home.

Look Into Waiving the Contingencies: This risky approach involves waiving one or more of the contingency clauses put on the home. Examples of contingencies include financing terms or home inspection results. It is advised to approach this avenue with caution so that you do not end up with a purchase that you regret.

Act Swiftly and Be Flexible: You must be prepared to move quickly and make fast decisions if you get into a bidding war. You also need to be willing to be flexible. Having the right attitude of flexibility throughout the process will make you a preferred buyer, boosting the odds that your offer is the one chosen to close the sale.

Regardless of the cost of the properties that you are looking at, knowing how to win a bidding war will ensure that you get the most out of your real estate investment dollar.