How to Avoid Bidding Wars When Buying a Home
The real estate market, especially in today’s climate, can be extremely competitive. With high demand and few homes available on the market it is likely that you will get caught up in a bidding war. This can be an emotional experience, so instead of acting out of haste, take a look at some of these tips to keep you out of a bidding war or win if you end up caught in one.
Offer Cash
If you can afford to, offer cash for your purchase. Cash allows the seller to avoid the appraisal contingencies as well as the time the underwriters may take to secure the loan. If your cash is available but not an ideal option, consider it for winning the bid and refinancing after.
Be the First Offer
If the market is hot and interest for the house is high then go ahead and offer more than the asking price if your budget can afford it. No matter what you decide to do make sure you are not waiting too long to put an offer in on a house you like.
Drop Contingencies
Contingencies are specific requirements that must be met before a sale is complete. Avoiding contingencies will make your offer more attractive because it will result in a quicker sale. Sellers want to see clean offers. Do not have the seller pay for minor inconveniences and repairs that come up in the home inspection for example.
Flexible Closing Date
A flexible closing date will appear more attractive to the seller because it will alleviate the pressure of moving out quickly. This is especially attractive for sellers who have children and need flexibility moving out while juggling school and their jobs.
Get Your Mortgage Pre-approved
You should get pre-approved for your mortgage before you even start looking at homes. This shows the seller that you are a serious buyer and won’t run into financial issues in the closing process. In a sellers market, the seller has all of the power, so without a pre-approval letter they might pass right over your offer.
Work with a Real Estate Agent
Working with an experienced real estate agent is the best way to ensure you win a bidding war. They know the market and will guide you to making responsible and informed decisions. The Gilson & Sikora Group is a team of highly-seasoned professionals that know their way around the real estate market. Contact our team today if you are a potential buyer or seller.
