You’ve finally selected your new dream home after months of effort and searching. Now, you are ready to take the next step, buying a new home!
However, if you are searching for a home in the seller’s market, there is one thing that can stand between you and your dream home: Other Buyers.
So what do you need to do?
Bidding Wars could be your answer as they are the hallmark of the seller market. In this article, we’ll look at the few strategies you can use in the bidding war to make sure you’ll achieve victory and avoid heartbreak.
● First Things First: Get Your Pre-approval Letter
In the first step, get the pre-approved letter for getting the mortgage before you go shopping for your new house if you haven’t heard about the pre-qualification process. In that case, actually pre-qualification process is the estimate of the amount based loan on the unwritten confirmation of your earnings and additional details.
On the contrary, a preapproval letter provides a particular amount on the basis of your W-2s bank statements and other official documents. Furthermore, a preapproval letter describes to the seller that you are serious about buying their home. Also, it tells the seller that you won’t get into trouble after getting a mortgage to buy a property.
● Go For the Highest Offer
Usually, you have to offer the highest rates if you want to win the bidding war. But, the highest offer is not always the one chosen by the seller; in fact, money does talk.
Further, to ensure you maintain the best circumstances, you may need to ignore your budget. Also, Bidding Wars can be emotional sometimes, and you should be able to walk away and choose another option that fits your budget.
Likewise, if you want to know how much competition is at your chosen or desired home, you can always ask the real agent to get in touch with the seller listing agent as they have some critical insights on this topic. Also, your real agent can also take the help of the local market data so you can smash the best balance between securing your home and saving money-saving.
● Team up with a top Realtor
Having access to the right information quickly is extremely helpful in a bidding war. Hire the best real estate agent who know the product and the area. Realtors have experience with multiple offer scenarios and can guide you perfectly through the transaction. They are also in tune with the market and are trained to negotiate on your behalf.
● Write a Customized and Personal Letter
Before writing a letter, you can think of the best memories that you’ve made in your current house. The reason you need to write a personal letter is because many of the sellers like giving their home to someone who will take care of their home as they did.
Also, you can enhance your winning probabilities by adding your customized and personal letter along with your offer letter. Surely, the personal letter costs nothing but your writing, but through a personal letter, you can leave a long-lasting impression on the buyer.
Here is what you can add in your personal letter:
- Few points about yourself: In your personal letter you can add a few points about yourself. You can introduce yourself and your family at the start of your letter. This way, you can provide emotions instead of just a set of numbers and make you stand out of the crowd, and surely the seller will remember you when it’s time to choose the offer.
- Few Points about the Property Details You Like: One of the key benefits of adding a personal letter is you can add all the details that you like about the desired property. You can add the smallest detail about the house, and the seller will know why you want to choose their home.
● Provide All-Cash Deal
If you are able to offer all cash for the home without applying for the mortgage, your offer usually goes on the top of the pile. Basically, this way, the seller doesn’t need to worry about problems related to the finances. You may also be able to get the delayed financing after the close of the sale by you. This helps you re-achieve access to the cash which you have in your home.
In addition, cash sales can be an excellent method in saving your time, and you can close earlier because there is no underwriting process to stay on. Also, a cash offer is feasible if the seller wants to sell out their home ASAP!
● Leave the Contingencies Plans
No seller wants to leave their home in the market forever, and they don’t want to have a contingency that will result in the sale falling through. Therefore, you can make your offer powerful by leaving the contingency. Basically, contingency is the specific conditions that should be met before the sale completion.
When you drop the contingency, you are defining to the seller that you are able to pay an additional amount in the form of cash at closing if the house appraises for less than the agreed-on price.
● Lastly, Be Available!
The final step to winning a bidding war is to remain active on a home sale and keep yourself available. You can leave your information to the seller and also ask them to contact your real estate agent or you with their question about your offer. Be available to the seller queries and have your real estate agent on board with the listing agent to observe the seller’s progress.
Conclusion: Win Your Next Bidding War
In a competitive property market, you may need to see and analyze other buyers who have eyes on your desired property. That’s why, if you want to win your next Bidding War, ensure to get authentic/verified pre-approval letter.