Know How to Get Ahead of the Bidding War
If you’re buying a home at the height of a seller’s market or simply want a sought-after house in a neighborhood with limited turnover, you may find yourself in the midst of a real estate bidding war. While it’s tempting to just keep upping the number every time someone outbids you, you may need to step back and decide how much you really want that particular home. Here are some home-buying tips to help you navigate the vicious bidding waters.
Set a Budget
Start by figuring out exactly how much you can afford before you look at properties. Your income, credit rating, monthly expenses, and down payment will help determine your loan approval. Work with the right mortgage team to help you get started.
It may seem logical that a seller would automatically accept the highest bid, but sellers want to be certain that offers are going to go through. In short, putting in a high bid can be a risk – both because the seller may not accept it, and because your lender may not be willing to increase the value of the loan.
Watch for Timing
When you’re competing against potential buyers, it’s in your best interest to be on top of things and scan the housing listings on a daily basis. Once you see a home on the market that sparks your interest, consider acting quickly. If you wait a day or two, someone else may have already claimed the advantage.
Make Your Strongest Offer
In a tight housing market, you may assume that there are going to be multiple offers on a property. Rather than going in with the mindset of negotiating your final price, try going in with your strongest offer.
Are you ready to secure the right home loan to see you into your dream house? Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We’re happy to help!