1st Time Buyer: Help Win Bidding War for Competitive Property

[Elliott Kim]

Hello Bigger Pockets!

I'm in pursuit to becoming a first-time house owner/hacker in the extremely competitive market of Chicago. Upon the property's listing a day ago, I quickly consulted my agent and decided it best to throw an offer at listing price to get some conversation going. Surprisingly, the agent said she received more than 20 blind offers on the property. I am going to go visit the property tomorrow at a group showing and was wondering if there was any way to engineer my offer to stand out amongst the others.

A quick facts breakdown:

- Property: Triplex, looking to owner occupy and rent other units

- Market: downtown Chicago

- Financing: Pre-approval for 3.5% down FHA available and given

I really want this deal to work out but feel as if I'm at a disadvantage using FHA financing. I've heard waiving contingencies or inspections could improve my offer but I'm hesitant to blindly buying a property without due diligence at my limited level of experience.

Any comments and suggestions are appreciated.

Thank you!

[James C.]

Elliot,

As @Russell Brazil said, 5-10K over the next best offer would get a seller's attention in a bidding war, but only if you have the room in your numbers. When the bidding wars start... it's Cash, Cash, Cash and no contingencies, especially with more than a couple offers on the table.

When all the sharks are circling, the biggest one gets the meal first. Better to find the fish the sharks aren't looking at and take it quietly.

I also agree with @Chris Mason look for those "hidden" things about a property that make it possible. Like a SFR zoned MF that could become a 2 unit. Or a 4 Unit with an "extra" apartment. A SFR on two lots, so you can split one off and build another house on it. The "hidden" things about a property aren't there a lot of the time... but if you discover them, and no one else has taken the time to look, or doesn't know... you could do well.

Good luck,

Jim