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Win a Bidding War Without Going Over Your Budget
Summer is almost here! The weather isn’t the only thing that is heating up — so is the competition for buying a home! Home buying always picks up during warmer months, so don’t be surprised if you find yourself in a bidding war.
You don’t have to go over your budget to win in a home buying bidding war! There are a number of other strategies you can use to compete with buyers
But remember that it all starts with the right financing! Compete with other home buyers by making an offer that’s already backed by a lender.
Best Tips for Competing with Other Home Buyers (Without Blowing Your Budget)
Know how much you can afford.
Buying a home is emotional, so it’s tempting to do whatever it takes to buy your dream home — even if it means offering more than you intended. Knowing how much you can afford will allow you to avoid overspending. Our office will go over the numbers and your mortgage options so you’ll have all the information you need to make a smart bid.
Here’s something else to think about: You don’t lose anything when you buy what you can afford to pay. Staying within your budget is a smart financial decision and a sign of a savvy home shopper.
Talk it over with the listing agent.
Make sure your real estate agent is talking to the listing agent! Your bid can easily get overlooked when the listing agent is sorting through multiple offers and your agent is not following up.
Don’t let this happen to you!
Ask your agent to contact the listing agent to make your offer personal and noticeable.
Need help finding a real estate agent? Contact us for resources!
Suggest a shorter closing.
Every seller has a motivation, and if you can find out your seller’s motivation, then you’ll be able to win them over without spending a penny more! If the seller needs to sell fast, for example, you can offer to close sooner than the typical 6-week closing period.
But how do you go about closing in 3-4 weeks? Get a home loan pre-approval!
Rent the home back to the sellers.
However, you might run into sellers that aren’t in a rush to move out of the house. Perhaps they are still working out the details of their next living arrangements and need a few months before they move out. In this case, you can offer to rent the home back to the seller in exchange for accepting your bid.
Submit an “as is” offer.
Offers that have minimal conditions are the most attractive to sellers. For example, you can suggest to lessen the inspection period to two days or skip the inspection altogether. Certain home loans will not all this type of move, but it is something to explore when you’re competing for your dream home.
Did you find this article helpful? Share it with a friend! And remember that your best chance at winning the bidding war starts with a pre-approval letter.