When many people start looking for a new home, they wonder what they should choose and how much of an investment it will be. Although many people aren't quite sure about what their new home will look like, the fact of the matter is that there are many aspects to be mindful of when it comes to real estate. From paying attention to how much things cost to looking carefully at your options, it really pays to understand and apply a little wisdom before you break ground on a project. Check out these posts to find out great tips about real estate.
One of the easiest ways to win a home purchase bidding war is to submit the highest bid. Unfortunately, you are not guaranteed to win even if you submit the highest bid. Fortunately, there are tips and tricks you can use to win a bidding war without relying too much on the size of the bid. Below are such tips and tricks.
Minimize Contingencies
Both parties (sellers and buyers) use contingencies to get their way during a home sale. A seller would be happiest if they could avoid all buyer contingencies and get the buyer to accept all seller contingencies. You might not get to that level, but you can do your best to drop your contingencies and accept the seller's contingencies. Doing that reduces the risk of the deal falling through, which any seller will be glad of.
Get Mortgage Pre-approval
Having inadequate funds commonly causes real estate deals to fall through. The seller knows this and will be glad to receive a bid with guaranteed funding. If you are relying on a mortgage, get prepared for the loan so that the seller knows the funds will be there once you agree on the price. This also means you should not make a bid that exceeds the preapproved figure.
Pay Cash
The 'cash is king' saying is true for most sellers. If mortgage pre-approval is good, then cash payment is the best. Paying cash also reduces closing costs, accelerates closing activities, and shows that you mean business.
Increase the Down Payment
As previously mentioned, sellers are wary of bids that are likely to fall through. The seller knows you are unlikely to put up a big down payment and then not see the deal through. Therefore, if you have the money, ignore the traditional 20% down payment and opt for something in the region of 30% or even more.
Research the Seller
Lastly, you can also research the seller to know their motivation and what makes them tick. Promise the seller a quick closing if your research reveals that they want to move in a hurry. Praise the home's suitability for raising kids if your research reveals that the seller is a family person. Of course, any of these (or other research hints) will only work if you are dealing with an individual seller.
Hopefully, you will win the bidding war and get the house of your dreams. Ensure you don't focus so much on winning that you end up overspending on the house. Let a real estate agent guide you throughout the transaction to help you protect your resources.
Share27 February 2020
