(3 Ways to Win the Bidding War Without Busting Through Your Mortgage Approval Amount)
Are you making an offer on a new home the current hot housing market? If so, one possibility is that you are going to end up bidding against other buyers who are looking to buy the same home. Unfortunately, in some cases bidding wars are inevitable, and they can be a significant source of stress. Let’s take a look at three ways that you can win a bidding war without having to spend more than you can afford.
Price Is Important, But It’s Not Everything
The first consideration to keep in mind is that price is important, but it isn’t the sole consideration that sellers make when deciding which offer to choose. In fact, for many home sellers, the price is secondary to a variety of other factors.
For example, consider whether or not the sellers need to close quickly. Perhaps they are moving to a new city, or have already bought a new house and are looking to get out of their old one. If you have your mortgage financing pre-approved and your paperwork in order, you can promise a shorter close than other buyers may be able to provide.
Have A Face-To-Face Conversation With The Listing Agent
One thing I like to do is have a sit-down chat with the seller’s real estate agent to find out what their motivations are. It is worth the investment of your time! If I can’t get a face to face meeting (let’s be real, everyone is super busy), I at least try to call and chat with them over the phone. Are they selling for the money, are they moving, are they under pressure or just getting rid of the house to make an upgrade? All are factors that you can use to your advantage in a bidding war.
Another great tip: be sure to find out where the sellers plan to live once they sell their home. If they want to stay in the house, you may be able to buy it and lease it back to them. That’s a difficult offer to refuse.
Be Flexible, But Be Firm
Finally, keep in mind that you will need to be flexible to win a bidding war, but you should remain firm. Don’t bend your offer or terms too much. If you table a great offer and still lose the bidding war, that’s life. You can move on and find another great home to live in.
If you are in a hot real estate market, it’s a good idea to mentally prepare for a bidding war when you submit an offer on a new home. For more insight or to learn more about buying or selling a house in this market, contact me today.
Click here to learn more about making an offer a seller can’t refuse.
Looking to get pre-approved or learn more about the mortgage process? Reach out to my friend Ken Levengood.
