5 Tips to Help You Win a Bidding War
It’s been said again and again – the only person who truly wins in a bidding war is the seller. Buyers who compete for a property and go over budget put themselves in a dangerous situation. But given the state of the current market, bidding wars might be here to stay, so if you get caught up in one, make sure you’re prepared. Follow my steps for coming out of a bidding war on top!
Research Ahead of Time
Before you do anything you should
research the market you want to live in. Find out what homes are listed for and
what they’re selling for. If homes are going for more than the asking price you
know there was probably a bidding war.
Get Preapproved
One of the smartest things you can do is
to get preapproved before you start looking at houses. It will help you to
understand what you can afford, but more importantly, it can really help you
out in a bidding war situation. If other people’s offers are conditional on
financing, yours is far more likely to be accepted – even if the offer is
slightly lower.
Take the Emotion Out of It
The toughest part about a bidding war is
keeping your emotions in check. For some of us our competitive side comes out
and we just want to win, while others might feel emotionally attached to the
dream of owning this particular home. Whatever emotion you’re experiencing, do
your best to rein it in. When emotions run high, mistakes are made.
Make a Large Deposit
A large deposit indicates to the seller
that you’re willing to put your money where your mouth is. If you’re not sure
how much to put down ask your agent to look into what a typical deposit amount
is in the region (it can vary based on location). This will give you an idea of
what other potential buyers might offer so that you can put down more.
Beat the Traffic
Houses listed on a Monday or Tuesday
typically sell for less than those listed on a Thursday or Friday. I always try
to get in early in the week so I can take a good look and put in an offer
before the weekend traffic hits. There’s no law that states that you can’t make
an offer before the official offer date, and it really bothers me when agents
hold off on offers to create a bidding war situation. Beat the traffic – beat
the bidding war.