Real Estate Tip of the Week: Bidding War Edition
The housing market is filled with competition!
If you’ve been out searching for a home, then you’ve probably been told (either by your agent or from other buyers) that you’ll probably be fighting for the home that you want.
So what do you do to make sure you win the bidding war?
One of the best things you can do to win a bidding war, is to get pre-approved for a mortgage. This should be done regardless, before you enter the home-searching phase (however, some potential homebuyers might not take this first step). This pre-approval will show the seller that you’re ready to purchase.
Cash offers erase the need for an appraisal and bank approval for a loan. This sort of offer signals to the seller that you are ready to purchase the home today.
Raise the Price
If you can make sure you keep your counteroffer within means for your budget, it might benefit you in the long run to offer more and beat out other potential buyers that way.
Moveable Closing Date
If you can, allow for a flexible closing date. Giving the seller more time to fix any repairs, etc. might sound really appealing.
If wiggle room allows, removing contingences can help elevate your offer. However, be weary with this – the more you remove, the more risk is taken off of the seller and put on to you.
Write a Personal Letter
Seeing pictures of your family, and/or why you love their house, can really motivate the seller to choose you over other buyers. It becomes more personal – especially if the seller has been in the home for some time.
Bidding wars aren’t necessarily fun – but they don’t have to be the end game for you as a buyer. Work with your real estate agent to make sure you receive the best deal.
For more real estate tips and tricks, stop by AmeriTitle’s Blog.