Bidding Wars: Don’t Let the Competition Get the Property You Want
When a hot property comes on the market, you can be certain that a lot of people are going to want it. This might be your dream home, but if more than one offer gets put in, you could lose out. Bidding wars are all too common in today’s housing market. While there are certainly no guarantees, there are several things you can do to increase your chances of emerging the victor.
Get All Your Financial Affairs in Order
You want your bid to be the most attractive to the current homeowner. The best way to accomplish that is to bring tangible assets to the table. You want to be preapproved for a loan before you submit your offer. If you can say that you can definitely pay a certain amount, then that is going to look a lot better than saying you can maybe pay the asking price.
Submit a Strong Initial Offer
Many people assume lowballing is part of the negotiation process. However, when it comes to bidding wars, you never want to insult the current homeowner. If you submit an offer that is insanely low, then you may not even be considered. It is OK to submit something a little lower than the asking price, but do not get too crazy.
Be Ready to Escalate
For extremely attractive properties, it is not unheard of for the price to go higher than what was initially being asked. This means the owner only asked for a certain amount, but due to other people’s bidding, it goes thousands of dollars above that. If you want to remain viable among the competition, you should be willing to go a little higher than the asking price. Keep in mind that you do not want to agree to pay more than you can reasonably afford.
Take Care of the Inspection
Regardless of how hot a property is, you always want to perform an inspection. This will let you know if there are any hidden problems with the property that need to be addressed. This can also help you out during the bidding process because if something damaged is discovered, then you can be justified in offering a lower bid.
Bidding wars require strategy to win. However, they also require a lot of heart. You want to make it clear to the current owner that you really do love this property. Do not be afraid to tell the owner how much you like the house. If the owner simply likes you over everyone else, you stand a better chance of coming out on top.