7 Essential Tips to Win a Bidding War in Seattle

Seattle is one of the most competitive real estate markets in the US to buy a home with some of the highest sale prices. 

There is a confluence of beautiful homes, fantastic scenery, and a flourishing tech scene. These factors attract home buyers from all over the US to the city, and in the current real estate environment competition is higher than ever. 

It is common to hear about buyers finding their dream home in the Emerald City, only to learn that the house has multiple offers already placed on it. While a bidding war seems daunting, buyers that constructively attack the process can secure the Seattle home of their dreams. 

To give buyers an edge in this seller's market, we compiled seven expert tips to increase your chances of winning a bidding war. 

Tips to win a bidding war in Seattle

• Figure out your top budget
• Get pre-approved for a mortgage
• Work with an expert realtor
• Increase your budget with a commission rebate
• Get creative with non-financial terms
• Cash is king, if possible
• Track the market with property alerts

Figure out your top budget

The first step to winning a bidding war is proper budget preparation. Jumping headfirst into a search for a Seattle home in Woodinville without getting your finances in order can quickly dash homeownership dreams. 

Buyers should break down their income and expenses to figure out monthly spending and how much they can afford to put into a home. Having a budget laid out tells you how much you can set aside for upfront expenses like the down payment and closing costs. Plus, a well-rounded budget informs you of how much you can likely spend each month on mortgage payments. 

At the end of the day, the best way to figure out your monthly limits is by getting pre-approved by a lender. 

Get pre-approved for a mortgage 

Searching is only half the battle in a bidding war. 

Having a pre-approval letter on hand in a hot market is a great way to make your offer stand out from the crowd. Seattle homeowners know their Queen Anne homes fetch a high price, so buyers must convey the strength of their offer through a pre-approval letter. 

These letters show sellers that lenders are on standby to finance the transaction. By examining your work and credit history, lenders can determine a loan amount. 

Plus, when it's time to find a buyer's agent, you have a realistic idea of your budget. 

Work with an expert realtor

After getting your finances squared away, it is time to find an expert agent to supercharge your home search. 

Purchasing a home in Seattle is a complicated procedure, and buyers will want an experienced buyer’s agent in their corner. They will walk you through the buying process, help you narrow down your target neighborhood, and have your back in the transaction process. 

Local realtors help Seattle buyers navigate escrow fees, inspections, and home appraisals. Most importantly, Seattle agents with a slew of deals under their belt will ensure you get a good deal on your Magnolia home. 

But not all agents are the same, and buyers can increase their purchasing power by partnering with the right agent. 

Increase your budget with a commission rebate

Many buyers in Seattle end up working with the first agent recommended to them by friends and family. 

But Seattle buyers who skip out on interviewing various agents miss out on improving their purchasing power. Reach out to several agents, asking them about their deal experience, what neighborhoods they work in, and if they offer commission rebates.

Commission rebates, also known as home buyer rebates, are powerful tools that can increase a buyer's purchasing power. While they are legal in 40 states, including Washington, many buyers have not heard of the money-saving concept. 

Modern brokerages like Prevu Real Estate upend norms by providing a portion of f the buyer's broker fee back to new homeowners through a rebate. Seattle buyers that stand to receive a rebate can make their purchase more affordable.

Yet even with improved purchasing power, buyers will want to consider non-financial ways to strengthen their offer.

Get creative with non-financial terms

Even with an increased buying budget, other buyers are always ready to outbid you. 

This is when you have to get creative with your bid. Beyond raising the price of your offer, certain aspects of a deal provide some flexibility for buyers to influence sellers. Non-financials include inspections, third-party appraisals, closing dates. 

Sellers worry about making a move, and providing a bit of wiggle room on the move-in date is an easy way to make your offer stand out. You can woo most sellers by putting off the closing date, especially in the current market. 

Making concessions around home inspections and getting your appraisal separate from your lender's can put you ahead, but buyer beware. These inspections can turn up defects in the home that might require heavy remodeling or construction. 

Cash is king, if possible

Of course, one of the most potent tools to entice a seller is cold, hard cash. 

An all-cash offer is almost sure to win out over financed offers, as there is little downtime between a seller accepting an offer and receiving the cash for the property. There is a security that comes with knowing that there is no lender to deny funding as the deal nears closing. 

But you do not have to be flush with cash to boost your offer. Buyers can sweeten the deal by putting more money into the down payment. It is an almost surefire way to win out in a bid for a swanky Pike's Place Market condo. 

And this benefits the buyer as well, seeing as they will have less of a principal to pay off on their monthly mortgage. 

Track the market with property alerts

Given the steep competition in the Seattle market, it is important to tour properties as soon as they come on the market. In order to do so, create a property search on your favorite real estate site and be alerted when new listings go on the market. If you see something you like, schedule a tour as soon as possible. Don't wait for the weekend!

One of the best ways to avoid a bidding war is to see a property quickly and make a strong offer the seller can't ignore before other buyers are able to see it.

Interested in winning your bidding war in Seattle? Browse listings and see how much you can save with Prevu’s Smart Buyer Rebate.