Posted on: 24 February 2021
If you are looking at homes for sale, you may have found the right house already—or perhaps you are still looking.
Regardless of where you are in the process, you might wonder what to do when that perfect home listing strikes you. Could a bidding war erupt? What should you do if it does?
These tips will help you get through the bidding process.
Develop a Strategy for a Bidding War
One of the first things you need to do is set up a plan. Do you want to avoid a bidding war, or are you okay moving forward even if there is some competition? How high are you willing to go? The earlier you plan, the better prepared you are for a potential bidding war.
Get Preapproval Before You Get Serious
It is also important that you get preapproval for your mortgage before you place a bid on a house. This ensures that you do not have to pull out (even as the winning bidder) because you were denied a loan.
Make a Cash Offer If Possible
Cash offers can go far in a competitive market. If you have cash on hand, you can actually make a big difference in your future, perhaps even landing a home simply because the seller is motivated by your offer.
Go Beyond Asking Price
One quick way to end a bidding war is to offer more than the asking price of the home. Of course, this is something you have to think about carefully, as you could spend more on the home than it is worth.
Earnest Money & Down Payments Can Help
If you can increase the value of your down payment or provide earnest money, you may cinch the deal, even if things are getting competitive in a bidding war. Your real estate agent can help you determine the best value to put up.
Considering Eliminating Contingencies
Finally, you might carefully consider removing contingency elements in your contract. For example, you might agree to be responsible for buying the house in any situation, even if the inspector finds a serious issue. This helps you appear more serious in your offer.
Consult With a Real Estate Professional
A professional will help you take the best steps toward landing the right home. As you look at homes for sale in your desired area, a real estate pro can help you either avoid or win a bidding war.Share