Finding your dream house can be a long and stressful process. However, if you are financially secure, you can act with confidence. In a seller’s market, all home buyers are your competition, so do not exchange information with anyone regardless of how close you feel with them. Bidding wars are a part of the real estate market and they should not feel personal in any way.
Main Tips and Strategies
According to an informed realtor with experience listing homes for sale in Erie CO, there are many tips and strategies that you can use to win a bid. One of them is being preapproved for mortgage. A prequalification process entails a preapproval letter based on credit score and income documentation.
Another tip is to make a generous offer that fits your budget. To do that, you can get into contact with the seller’s listing agent to find out about previous or current bidding offers.
It is also important to not get too emotional during the process because it can make the seller feel uneasy. Instead, you can choose to be proactive and stay on top of the situation by accessing housing data specific to the local market.
Sometimes, it helps to not be afraid of overpaying in order to defeat your competition. Outbidding other buyers with money upfront is also a plus.
Do not spend extra money on bonus commissions or fees requested by the real estate agent. It is better to save your money for the bidding process.
Using delayed financing to gain access to cash can also prove to be a good strategy. A cash sale, usually, closes much faster than the other ones. It is also very enticing to the seller.
Personal Pitch and Willingness to Walk Away
Making a personal pitch to the seller can also help. It is important to leave a lasting impression by providing details connected to your personal life or even personal desires and aspirations. To make the seller remember you, it is also worthwhile attempting to get them to empathize with you, so focus on things you might have in common. Last but not least, do not mention any of your financial problems to the seller or real estate agent.
Being willing to walk away from the bidding process at any time can also help with not looking desperate to the seller. In addition, purchasing PMI (private mortgage insurance) can be a plus in the eyes of many sellers that you try to impress.
If all else fails, just drop your contingencies which are the specific conditions that have to be met before the sale is completed. The contingencies are only necessary for the mortgage lender and you can close the sale without them if you choose to do so. You can also drop the house inspection to show that you are not picky about repairs. You can choose to inspect the property yourself instead of hiring a professional to do it. You can check the: outlets, garage doors, home security systems, faucets, showers, toilets, gutters and home appliances. While doing so, you can pay close attention to any weird odors or look for cracks in the foundation. Moreover, do not ask for improvement records or home warranties in case the seller is not willing to provide them.
All in all, just be flexible and available to meet with the seller at any time. However, do not meet with them before you complete your documentation. They may ask to see bank statements, income information and credit score papers.