How to Win the Bidding War when Purchasing a Home

Ask any experienced homeowner and you will learn that buying in a ‘hot’ real estate market can be challenging. A high supply of buyers competing for a low stock of available homes is a combination that can lead to bidding wars, price inflation and other headaches. The good news: with some careful preparation and the right mindset, a bidding war is one that you can win. Read on to learn how you can win the bidding war when purchasing a home.

How to Win the Bidding War when Purchasing a Home

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Start With Strong Representation

Answer this question honestly: are you an experienced negotiator? Unless you have made a career out of buying and selling homes, you may find that your skills are lacking. The middle of a bidding war is a poor time to have this realization, so it’s best to start the process with strong professional representation. Invest the time in securing the services of an experienced real estate agent who has a history of successful home purchases and happy clients. For extra assurance, ask them for recent testimonials so you can hear how they helped other buyers.

Get Pre-Approved For Your Mortgage Financing

Now that you have a good real estate agent on your side, you’ll want to move to the next step: meeting with a mortgage lender. Your goal is to secure pre-approval for your mortgage financing, which will show the seller that you’re both prepared and serious about buying their home. Gather up recent financial information like pay stubs, tax returns and bank statements before meeting with a mortgage professional. Being prepared will make the approval process a bit easier.

Have The Appraisal And Inspection Team Ready

Once you have found your dream home, you will need to move quickly to have it appraised and inspected. As with your other professionals, it’s best to pre-book these companies ahead of time so they’re ready to go. Ask your friends and family for referrals now so you can chat with potential appraisers and inspectors.

Be Serious About A Quick Closing Process

Finally, if it isn’t already obvious to them, make it clear to the seller that you’re interested in closing quickly. Every home seller is interested in a fast, efficient close so they can move on. Pushing the pace a bit will demonstrate that you are not going to reverse course.

Related Post: 4 Things you Should Never Say When Selling Your Home

Key Takeaway (How to Win the Bidding War when Purchasing a Home)

A high supply of buyers competing for a low stock of available homes is a combination that can lead to bidding wars, price inflation and other headaches. The good news: with some careful preparation and the right mindset, a bidding war is one that you can win. To accomplish this, start with a strong presentation. This include always looking sharp and professional when meeting with potential sellers. It is a good idea to hire a professional real estate agent to assist you in this area. To master the bidding war you should also get pre-approved for mortgage loan and also have your inspection and appraisal team ready when needed. Finally, once you find the property you want to purchase, make an offer as quickly as possible and perform your due diligence on the property efficiently so you can close without delay.

When you are ready to review documents and sign contracts be sure to have your attorney take a look and provide you with legal counsel. Our nationwide law firm can assist you in this area. Click here to learn more.

Share with us: How else do you master the bidding game when purchasing a home? Let us know in the comments below.

Cheers!