Hello World! Welcome Friends! During the current real estate market with more buyers than available homes, bidding wars are inevitable. Homes in the most coveted neighborhoods often sell for an above listing price within a few days. In a competitive market, how can you divide and conquer to get a dream house? Discover seven smart tips for winning a real estate bidding war.
Increase the Offer
The most obvious way to win a bidding war is to increase your original offer. Money talks to sellers and they want the most for their property. Therefore, before going to the bidding event it is recommended to talk to the real estate expert as they can guide you about the finances and help create a smart investment strategy. Often offering just a few thousand dollars more makes a difference, depending on the location and price of the house. Be careful if the money is coming out-of-pocket, as there are other expenses associated with buying a home.
Boost the Down-Payment
Increasing the money down is another way for a bidder to stand out from the clamoring crowd. Boosting the down-payment commitment proves a buyer is serious about the property. Plus, a higher down-payment means a lower mortgage loan, which can make approvals and closing on the house faster. Appraisals are also easier when a buyer is willing to increase the money being put down on the home.
Pre-Approval Matters
When potential buyers get into a bidding war, the experts over at Usaj Realty will tell you pre-approval matters. The sellers will choose the buyers who are pre-approved for a mortgage before speculators. Get a pre-qualification letter from the mortgage lender that states buyers’ level of purchasing power. When the buyers start bidding, the sellers will prefer to deal with people who are ready to get a loan and close on the house fast.
Deal With Risk
Waiving the contingencies is another way for buyers to stand out in a bidding war. Contingencies are things that must be met to close the deal on a house. If the conditions are not met, the buyer can back out of the deal without losing money. By waiving contingencies such as an inspection or financing contingencies, the buyers become easier to deal with for the sellers, making them the most viable option. However, buyers must be cautious to ensure the risk is worth it.
Cash Buyers
Another obvious way to make sellers want the deal is to pay cash. Many buyers will not be able to offer the cash required to win a bidding war. When there are no lenders, the seller doesn’t have to face the risk of a financial deal falling through. Cash buyers are a sure thing, and the sellers will be pleased to make a deal.
The Personal Touch
Getting personal is another way for buyers to win a bidding war. Money is often the deciding factor, but a human touch never hurts. Buyers who love a property can write a letter to the sellers to let them know their feelings and why they want the house. Sharing personal details can make a buyer stand out to the sellers and help them win the bidding war.
Include an Escalation Clause
An escalation clause is an easy way to keep bidding on a property. The buyers state how much they will pay, and the increments they will go up to continue in the bidding for a house. An escalation clause shows the sellers that the buyers are serious.
Get to Know a Home Inspector
Another way to win a bidding ware is to know a home inspector. Edge the others out by offering to do an immediate inspection to ensure the property will be the right choice. After the buyers’ inspection and offer, the sellers know they are ready.
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