Bidding Wars: 5 Ways You Can Win
If you are thinking about buying a home, it is possible that you are shopping in an area where residences receive multiple bids from prospective buyers. If this is a situation that you face, here are 5 tips to help you win the bidding wars.
- Avoid Purchasing With Emotion
Along with being an expensive purchase, buying a home can be a very emotional purchase. It is a goal that many individuals have for years and work very hard to achieve. Gather information about the prospective home to help you make a logical decision. Look at the sales prices of comparable homes in the same market. Any information will help you make a decision based on reason instead of emotion.
- Show Love When You Need
Avoiding purchasing with emotion does not mean that you should not let a seller know if you love the home. It will also help you to recognize if you are thinking about overpaying or spending beyond your budget because of the competitive nature of bidding instead of the information you have already assessed.
- Consider Pre-Inspection
This may require more money initially, but it can be a distinct advantage in bidding wars. If a home has been inspected before the buyer submits the offer it can eliminate contingencies from the contract. This makes offers much more appealing to the homeowner, as there are fewer opportunities for a prospective buyer to walk away from the sale.
- Get Pre-Approved
A restricted lending market means some borrowers will not be able to obtain the loans they thought they may qualify for. Eliminate this doubt for yourself and from a seller’s mind by getting pre-approved for a loan. If you do not have enough credit to obtain a loan for the entire cost of a home, be prepared to pay the difference in cash before beginning negotiations on the price.
- Make the First Offer
If you have found a home you like, make a generous offer to the owner, especially if you live in a market where homes sell quickly or are not often available. Waiting to see what others offer could leave the owner visualizing someone other than you occupying their home. Offering too little in a restricted market can be insulting to the seller, who may choose to negotiate with the next more reasonable offer.
Purchasing a home is one of the largest purchases that many individuals will ever make. If you are looking to purchase a home in an area where residences sell quickly or sell for more than the asking price, you may find yourself in the middle of the bidding wars. The above advice will help you achieve your home purchasing goals.