How to Navigate a Bidding War as a Buyer

How to Navigate a Bidding War as a Buyer

You found the perfect condo in Brookline, but so did ten other people. How do you win without overpaying wildly? Success in a bidding war requires a surgical strategy.

1. The Escalation Clause

An escalation clause tells the seller: 'I will pay $X more than your highest offer, up to a cap of $Y.' This keeps you in the game without bidding against yourself.

2. Shorten Your Contingencies

• Inspection: Offer a 'Pass/Fail' inspection or a shortened 3-day window.
• Financing: If you have a strong pre-approval, consider a shorter mortgage contingency date.

3. The Personal Touch

While money is the loudest voice, a personal letter explaining why you love the home can sometimes tip the scales in a close race.

A Warning on Waiving Everything

Never waive a home inspection unless you have a contractor walk through with you. The risk of hidden structural issues is too high, even in a hot market.