As expected, 2025 has kicked off with low inventory and steady mortgage rates in the low to mid-7% range. While inventory is slightly higher than last year, competition remains fierce. Buyers need to be prepared, strategic, and aggressive to secure a home in this market. Here’s how to make your offer stand out and win in a bidding war.
- Get Pre-Approved (or Better Yet, Pre-Committed!)
A strong pre-approval letter from a respected local lender is a must. Better yet, go for pre-commitment, which means your financials have already been reviewed, making you as close to a cash buyer as possible. Have your lender personally vouch for you to the listing agent—it could make all the difference. - Offer Over Asking—But Be Smart About It
Homes almost always sell over asking in bidding wars. Think long-term: a $10K increase in price adds only about $50 to your monthly mortgage—is it worth losing your dream home over that? If possible, search below your max budget so you have room to bid aggressively when the right home comes up. - Consider an Appraisal Gap Coverage
Sellers fear low appraisals sinking the deal. By agreeing to cover the difference (up to a set amount), you reassure the seller that the sale won’t fall apart over financing. - Write a Personal Letter
A heartfelt letter can help sway sellers emotionally. Share why you love their home and how you’ll care for it—but be careful to avoid any language that could violate Fair Housing laws. - Sweeten the Deal with Flexible Terms
✔ Shorten contingencies (inspection, financing, closing timeline)
✔ Be flexible on closing date to accommodate the seller’s needs
✔ Consider a use & occupancy agreement (allowing sellers to stay briefly after closing) - Waive or Limit the Inspection
If you’re comfortable, consider waiving the inspection or agreeing to cover a set amount of repairs. A “for informational purposes only” inspection shows commitment while still allowing you to assess the home’s condition. - Show Financial Strength
A higher down payment (10-20%) signals financial stability, making your offer more attractive. If possible, tap into a 401(k) loan or savings to boost your down payment and avoid mortgage insurance.
Ready to Win in 2025? Let’s Talk!
The right REALTOR® makes all the difference in navigating today’s competitive market. If you’re serious about buying a home this year, let’s create a strategy to help you win the home of your dreams!
