In a Bidding War Over a Home? Here’s How to Win!
So you have finally found the home of your dreams, congratulations! But uh-oh, what’s this? Someone else found it too and they are ready to fight tooth and nail for it. Here at the Mission Hills local movers, we want to help you get armed and ready to win a bidding war and nab your dream home. Read on to learn our expert tips and hopefully you will come out on top, with the keys to your new home in hand.
Here are some tips you need to remember:
Get preapproved and have a lender you are working with to expedite a deal if you need it. Have everything financially in order before you even start to look, so when a home seller needs documents you are a step ahead of the game and ready to buy. Keep your preapproval lender handy so you can have that verification before submitting an offer.
Have proof of funds or lots of cash. All cash buyers are preferred, but having proof of funds with your offer and a strong preapproval amount can be just as persuasive. You should offer a down payment of 20% to edge out other buyers. Have a financial profile detailing your employment, salary, bonuses, and other assets.
Act fast. To compete in a market where bidding wars are on the rise, make sure you see a home as soon as it goes on the market, so you can bid quickly. Find out what is motivating the sellers and be the buyer they are looking to find.
Have a home inspector lined up. Don’t buy a home without an inspection, but making an offer contingent on inspection delays the process and could let sellers bypass you for a more ready candidate. Have an inspector you are friendly with ready and willing to come over and inspect when you call.
Lessen contingencies when possible. One of the best ways to make your offer stronger is to eliminate contingencies regarding home inspection, financing or appraisal. That puts you in a more solid position to win a bidding war.
Consider an escalation clause. This addendum will allow your agent to offer a specified amount above the current highest offer the seller received. Think of it as a maximum offer on eBay, it will let you potentially have the last word in bidding if the counter-offering party isn’t willing to go higher on a whim.