You’re all set to buy your dream home. Today, the seller’s market has lots of buyers finding their dream home too. Many of you are looking at the same home. How can you win the fight in a bidding war for the home of your dreams? Here are a few strategies that will help you come out victorious.
Get a Preapproval Letter
Get a pre-approved mortgage before you start shopping for a home. Be sure to get a preapproval letter and not just get prequalified for an estimated amount.
A preapproval letter will let the seller know you’re serious and ready to buy. It also lets the seller know that you will have no trouble getting a mortgage to buy the property.
Offer An All-Cash Deal
If you can pay cash for your home and don’t need to apply for a mortgage your offer will generally jump to the top. A cash sale will save time for everyone and close sooner because there’s no underwriting to wait on. A cash offer is very powerful when the seller wants to sell their home ASAP.
Make the Highest Offer
Money talks. The highest offer isn’t always the one the seller chooses, but it’s usually the best way to win a bidding war. However, never throw caution to the wind and ignore your budget. Even when the war can get emotional, walk away and stay within your budget. Your real estate agent can use local market data to help you strike a good balance with your offer.
Get Personal
A personal letter can increase the chances of your winning a bidding war. A well-written letter can leave a lasting impression on the seller. Here are some tips on how you can write a great personal letter:
- Write about the details of the property that you love. Let the seller know exactly why you want to buy their home.
- Include a few details about yourself and your family. This will make the offer more personal than just a set of numbers.
- If your offer is low, explain why. Explaining your offer lets the seller know you aren’t simply attempting to lowball them. A seller may be inclined to sympathize with the situations of your budget and why your offer is coming in lower than others.
Be Reachable
Leave your information with the seller and invite them to contact you or your agent with any questions regarding your offer. Be quick to respond to inquiries and have your agent regularly check in with the listing agent. Try and be as flexible as possible and stay on the seller’s radar.
Conclusion
The likelihood that you will end up in a bidding war depends greatly on the state of the market. If there is reason to believe that many other buyers are going to be looking at a property, coming well prepared to the table can give you a leg up in negotiations.
If you are looking for some articles on Home Inspections, you might find How Many People Should Be on a Home Inspection? and Why Get a Pre-Listing Home Inspection? interesting.
