It’s great to see the housing market recover after a big letdown and enjoy the hot new market. But, with the recovery comes a tight supply of homes, multiple offers – and bidding wars. Knowing a few tricks of the real estate trade can help you emerge with the best bid and be the winner in a bidding war. For one, you should try to be the first offer – but don’t insult the seller with a lowball offer – especially with so few listings on the market today.
Bid at the asking price or only slightly below. The seller will know you’re a serious bidder with that type of beginning.
Another little known way to make your bid count is to send the seller a letter (possibly through your real estate agent). Tell the seller how much you love the home and mention something about the home that you particularly like and how your family will enjoy and take care of the home. Plan to spend as much cash as you on the down payment and be sure to get approved for a loan ahead of time to close. Mortgage lenders suspect loans that aren’t a sure thing and bringing cash to the table makes a difference.
Your real estate agent can be a huge asset in a bidding war. She can let the seller know that you’re completely enamored with the house and be specific about what you like about it. Chances are, the seller will appreciate that you noticed the touches he was responsible for.
Finally, be smart during a bidding war. Compare the most recent comps and research the market before getting into a bidding war and don’t let your emotional attachment to the house empty your wallet.
It’s easy to overpay when you get caught up in the emotions of a bidding war, but remember there’s always another house that you’ll love and enjoy. Too many buyers get caught up in the emotional aspect of purchasing a home and go overboard in a bidding war. Most regret it later on.
Happy House Hunting!
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