In a tight real estate market, a single house may get multiple offers within hours of being listed. That means you could lose out on your ideal home because others have outbid you. To win a bidding war, you’ll need to develop several strategies including the following!
Win a Bidding War: Be Quick on Your Feet
Once a property hits the market, it can be under contract within hours, so you have to act quickly. If you’re working with an agent, he or she may be able to alert you to properties coming on the market that fit your profile. There are also several real estate apps that allow you to set up alerts for properties within your search parameters, such as location, price, number of bedrooms, and so on. You’ll be notified of new listings within minutes after they’re posted. You can view photos, learn the details of the property, and take a virtual tour. Within hours, you can have your offer ready.
Pay in Cash
With multiple bids, sellers don’t automatically choose the highest offer; they also take a look at the buyer’s qualifications. Contingencies, such as needing to sell a home or secure financing, introduce a level of uncertainty into the deal and may make sellers hesitate. If you can offer cash for the property, your offer will rise to the top. You’ll save on closing costs, also, since you won’t have to pay mortgage processing fees and other costs. You should still get an appraisal if you’re paying in cash. This will ensure you are not overpaying.
Win a Bidding War: Get Pre-Approved
If paying cash isn’t an option for you, you should get pre-approval from a mortgage lender. This assures the seller that you can follow through on the offer. In a pre-approval process, the mortgage lender will review your financial information and clear you for financing up to a certain amount. Be sure you get pre-approval, not pre-qualification. Pre-qualification is not a guarantee that you will get a mortgage based on a preliminary look; it just says you will probably be approved. On the other hand, pre-approval is a more thorough process. A letter of pre-approval will be included with the offer.
When you’ve found that perfect home, you don’t want to get caught up in a bidding war. To increase your chances of getting the property you want, be prepared financially and act quickly to get your offer in. That way you can get the home of your dreams without overspending!
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