In many cities the housing market is very hot. This means, there isn't a lot of homes on the market, which makes the ones that are for sale a hot commodity. You will most likely run into a bidding war for that dream house you want, but there are ways you can try to ensure you win that war and get the house of your dreams. These are just some ways to help you come out on top.
Pre-Approval of Your Mortgage
Before even searching for a new home to buy, get pre-approved for your mortgage. If you are able to, along with your bank loan, get cash on hand too for a down payment. The more you are able to cover of the final price for the house the better. It shows you are ready and able to purchase the home, and you don't have to wait for approval from your bank. Plus, since you have cash in hand, you are very serious about your bid.
Bid Close to Asking
There are some buyers who bid quite a lot under the asking price. This method might work if the house has been sitting on the market for awhile and hasn't gotten a lot of interest from buyers. In a hot housing market however, this is a sure sign you will lose the property. Instead of giving a low asking price, bid just under or even at the asking price. A seller knows you are serious if you are willing to pay what they want for their home.
Have an Escalation Clause
An escalation clause is the amount of money you agree to increase your offer if there are any other bids on the house. You can place this increase in increments, such as a thousand dollars over the previous bid, or you can set your highest bid price right away. This doesn't mean you will automatically pay that top higher price, you ensure that your bid only goes up a pre-determined amount each time. This way, your bid is automatically entered and the seller doesn't have to wait for your response and if you are going to up your bid.
Have a Pre-Inspection
It will set you back a few hundred dollars, but it does show you are serious about buying this house. Many sellers hate the fact that the sale of the house is based on how the home inspection does. If you ask to have a pre-inspection done before you begin the bidding process, this shows the seller you are interested in the home and are prepared to do what it takes to get it.
To learn more, contact a real estate firm like Coldwell Banker Preferred - The Kathy Gagnon Team.Share