How to Win a Multiple Offer Bid

How to Win a Multiple Offer Bid in the Nashville foreclosure market Without Losing Your Shirt, by Rhonda Burgess, Real Estate Expert.

One of the worst things that can happen during the home buying process in the Nashville foreclosure market is to finally find your dream home, only to discover that someone else is already bidding on it. When this happens, how can you win your dream house without losing your shirt in the process? In this article, we'll cover some of the more important points to winning a multiple offer property in the Nashville foreclosure market.

Tip #1 - Know Your Limit

It's tempting to increase your bid based on emotions during a bid war. Buyers are often willing to pay more out of competitiveness, feeling that something they want is being taken away, or just plain rationalization.

This trap can cost you thousands of dollars. Instead, do your comparative analysis of the properties nearby, choose the highest number you're willing to pay for this property and stick to it.

Tip #2 - Have a Real Estate Agent That's Looking Out for You

Remember that real estate agents are paid based on the selling price. There are agents that will look out for you and have your best interest in mind, while other agents would rather increase their commissions by convincing you to place a higher bid. It's important to have a real estate agent you can really trust during the process.

Tip #3 - Make an Impression on the Seller

Be more than just "Buyer #2." Have your mortgage preapproval in hand before you go shopping for a new home.  Be prepared to make a sizeable earnest money deposit to show the seller that you are serious.  Make sure that you completely fill out all of the seller's required forms.  Even if your bid is slightly lower, a seller may sell you the property because you are prepared for a quick closing.

Tip #4 - Remove Conditions

The less conditions you have on your contract, the better. Call up your loan officer and make sure you can get approved for the loan and remove the financing clause. The cleaner your contract, the more appealing it will be for the seller.

These four tips will help you bid on a property in the Nashville foreclosure market without losing your shirt. Keep them in mind if you find yourself in a multiple offer situation.

There is a lot of free information available to you about buying, selling or investing in the Nashville foreclosure market. For complete information about the Nashville foreclosure market including current homes for sale, property values and more, please visit the most complete website online dedicated to the Nashville real estate at www.RealtyWorldNashville.net.