I won a bidding war for a home even though I didn't make the highest offer, and I'm convinced 2 things gave my offer the advantage

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • I found a house I loved and wanted to buy, but ended up getting involved in a bidding war after two other people made offers. 
  • I won that bidding war with an offer that was about $7,500 lower than the highest. 
  • My agent's communication with the seller and other agent was one big factor in their accepting my offer.
  • Additionally, the seller and I have a lot in common, as we'd both be first-time homebuyers with this house, and we shared a love for the backyard garden. It was exactly what I wanted, and I think this helped me win over other higher bids. 
  • Policygenius can help you compare homeowner's insurance policies to find the right coverage for you, at the right price »

On a Saturday evening, I got the call I hoped I wouldn't: The house I'd fallen in love with that morning had two other offers, and the seller wanted highest bids by the following day at 6 p.m. 

I was starting to feel defeated searching for a home. I'd found the house that morning, saw it at noon, and knew it was the place five minutes later. I made an offer on the recently updated two-bedroom, one-bathroom home that afternoon for the listing price of $199,000. Since there were two other offers, I'd have to do it all again. 

In Cincinnati, Ohio, where I'm shopping for my first home, the market has become surprisingly competitive. Zillow data shows that cities in the Midwest have unseated major metros for the cities where homes sell quickest. While homes in New York City, Miami, and Atlanta used to go the fastest, those cities have been replaced by Columbus, Ohio; Kansas City, Missouri; and, of course, Cincinnati, in the past few months.

The next morning, I added $8,500 to my offer after a conversation with my real estate agent, and tried to take my mind off the bidding war for the day.

Later that evening, I found out I'd actually won … but hadn't submitted the highest bid. My bid was actually about $7,500 lower than the highest. Now, we have a closing date on the calendar and I'm ready for this house to be mine. I'd won the bidding war without offering the most money, and the sellers told my agent that there were two main reasons why.

My real estate agent was diligent about following up

One of the reasons the seller chose my offer was because my real estate agent had been great about communicating with the agent and her partner, and they appreciated that.

After submitting my first offer, my agent called the home's agent to follow up. He made sure they saw the offer, and let them know how interested I was. He followed up again when we didn't have an answer by the deadline we'd set in the offer letter. He kept in close contact with them throughout the process, and ultimately, it helped my bid.

They hadn't heard as much from the other agents as they did from mine. My real estate agent's efforts paid off, and in the sellers' minds, may have put me ahead of the competition. 

I didn't hide that I loved the house

Selling a house is an emotional thing. It was clear that the seller loved the house and yard. He wanted someone who would feel the same way. I've never sold a house, but I'm sure it makes moving on easier if you know the next person will love it the way you do. 

The seller had bought this house as his first home, and wanted it to go to someone else who was in a similar spot in life (me!). Additionally, it was easy to tell that the seller loved the same thing I did about the house: the garden. He'd built multiple garden terraces throughout the yard, and I was in love with that. He enjoyed a longstanding pair of raspberry bushes so much that he wrote about them in the listing. I didn't play it cool or hold back: I was clear that I loved this house, and my agent passed along the message.

After losing a few offers, missing out on some other homes I liked, and becoming frustrated with how fast the market was moving, I'd considered putting my search on hold. In hindsight, it's a good thing I stayed in the game.

If it wasn't so apparent that this was the house for me, I don't think they would have accepted my offer. While every seller might not be so willing to forgo a few thousand dollars to find the right future owner for their house, I'm glad that this owner took the chance. I'm looking forward to loving it as much as they did.

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

Source: Read Full Article