If you’re like most people who are buying a condo or loft for sale in DTLA, you know that a bidding war is possible. After all, if you’re in love with a condo, there’s a good chance that other people might be, too.
So what do you do if there’s a bidding war – and perhaps more importantly, how do you win?
Here’s what you need to know.
How to Win a Bidding War on a DTLA Condo You Love
The bottom line is that the final decision rests with the seller. When multiple offers come in on a condo, the seller can pick and choose – and you might be surprised to learn that it’s not always all about money. In some cases, other things tip the scales in a certain buyer’s favor – including:
- Heartfelt letters
- Great financing
- An offer to buy the home as-is, with no concessions
What works for one seller won’t work for another, so talk to your real estate agent – he might be able to get a little info on the seller from the seller’s agent, which can give you an edge.
Offering More Money
The bottom line is that money talks. If there’s a bidding war, there’s nothing wrong with trying to get the highest bid – but make sure you’re not overpaying for the condo in your excitement. Talk to your agent if you’re thinking about throwing your hat in the ring, because unless you’re 100 percent in love with the condo, it’s not worth paying tens of thousands more for it when there are dozens of other, similar condos for sale nearby.
If you’re trying to get the highest bid, it’s usually best to increase your offer incrementally. You may not need to offer $50,000 over asking price; sometimes just a few thousand dollars will do.
Sometimes a good, heartfelt letter that explains why you really want to buy the seller’s condo is all you need to win a bidding war. Sharing the reasons you love the condo, like its fabulous layout, the neighborhood or other personal reasons, can be a huge deal.
Pro Tip: If there’s an improvement that the sellers clearly made, mentioning it in your letter can be a huge win.
Even if a letter isn’t enough alone, combining it with other winning strategies can make you a shoo-in.
You may not be able to buy with cash, but you may be able to pay your own closing costs. The better your financing looks, the more attractive your offer will be – and at the very least, you need mortgage preapproval.
Related: What is mortgage preapproval?
Buying the Home As-Is, With No Concessions
If you let the seller know you’re not going to ask for repairs, upgrades or improvements (hinging on the home inspection, of course), your offer might be more attractive than one from someone who’s likely to ask for those things. The reason this works? Sellers know they don’t have to come out of pocket to fix the place up – and that means more money in their pockets.
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
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