Stuck in a Bidding War? 3 Ways to Win Without Busting Through Your Mortgage Approval Amount
Are you making an offer on a new home in a 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, your agent should interact with the listing agent to determine if 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. 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.
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.
Trust Your Buyer Agent’s Advice
Your agent should explore the seller’s motivation as well as your capability to purchase the home with the least hassles for everyone. 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, but you should remain firm. Don’t bend your offer or terms too much. Don’t get yourself into a situation you will be uncomfortable with in the future. 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.
We 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 find out how much mortgage financing you qualify for, contact me today. I can help you find the best local lender, and as your agent, I can guide you through the entire purchase process.