Tips To Be In Front of a Bidding War
There is no way to escape a bidding war unscratched. You can however follow some basic rules to get an edge. To get started with, you should consider fulfilling the basic conditions. It will remove any vulnerability and keep you up to date with the decorum. Bidding wars usually hit a new height in urban centers, where housing is high on demand.
Loan Logic
Getting preapproval puts you well ahead of your competition. It will also allow you to envisage your maximum potential to set forth a bid. This obviously boosts your confidence and makes your offer seem rational to sellers.
Market Analysis
Go through a detail comparative market analysis before your proceed. Instead of depending on other sources, do independent research to see if the price is fair and logical in this market. There are several tools available online to compare prices.
Play Clean
Don’t try to be too shrewd. Avoid adding unnecessary terms, conditions, and requests. They will only saddle the sellers and compel them to move away from your offer. Look for potential loopholes, and remove, if there is any. Always keep a contingency plan to avoid untoward situations.
Inspect the Goods
A pre-buy home inspection usually costs 1% of the total price of a house. Keep that money separate. There is no guarantee in today’s real estate market; so you could fortify your plan by raising a home inspection fund. You would not have to worry when you lose a bid or two after inspection.
Pull the Trigger
In every vendor you will find a trigger that induces them to sell. Try to incentivize the whole process, and that will give the vendor a window to take your bait more seriously. Be creative and see what the seller may have to offer, that you may also require in the coming days. For example, moving a piano is risky, and the transportation cost can also soar up. If you need one, see if the home seller would be interested in leaving it behind for a suitable price. Little things like this can create a big impact.
Hide Your Hand
There is no difference between a bidding war and gambling – you can never predict the end result. Instead of breaking the bank to put forward the highest bid, try to find out what could be the other bids that you may have to face. You don’t need any psychic abilities to see how it’s going to be. Instead try to calculate the real value of the house.