Bidding War Tips + Tricks
A bidding war is never ideal, but in the current housing market, it is certainly possible that you will be faced with one in order to get the home of your dreams. If you find yourself in a bidding war, there are a few things you can do to help you close the deal on your dream home, fixer-upper or DIY project.
A pre-approval gives you multiple advantages in this fast-paced real estate market, showing the seller that you are a serious buyer and giving you an edge when there are multiple offers on the house. It also demonstrates to the seller and real estate agents that you are a safe bet as a buyer since a lender has already evaluated your financials and deemed you a strong candidate for a mortgage loan.
If you truly want a home, do not delay! Do your research and have an offer ready to go the day you see the property, if possible. Acting fast assures the seller that you are serious, and limits how many other offers yours will be compared against.
For a variety of reasons, a seller may want a little flexibility on the closing date. You may be in a hurry to get settled in your new home, but giving a little on the closing date can make you a much more attractive buyer. Put a tentative date in your offer, but make sure you tell the listing agent that you’re open to moving it if the seller needs more time.
Make a Statement
An earnest money deposit is money the seller gets to keep if you back out of the deal. Make a statement with your earnest money offering so the seller knows you really want the home. The more money you put down, the less risk you are to a seller, so offer an amount that will get you noticed and speak to your level of interest in the home
Make Your Best Offer
When there is a possibility of a bidding war, you definitely don’t want to make a lowball offer that may end up hurting your cause in the long run. Your realtor will help guide you in the process, to make the best offer to hopefully “win” in a bidding war by reviewing comparable sales from the neighborhood and surrounding areas.
Consider Your Contingencies
Some buyers may choose to waive contingencies from their sales contract in order to appear more attractive. As contingencies can add more risk, time, and hassle to a transaction, sellers often prefer non-contingent offers to those that come with conditions, even ones that come with a lower price point and less in profits.
At Priority Mortgage, we believe that the mortgage loan process should be easy and stress-free. If you need assistance, a mortgage expert who can answer questions is just a phone call away. For more information about the mortgage process or to get started, contact us today.