One of the challenges that you have to go through when buying a home is dealing with bidding wars. Bidding wars occur if there are two or more potential buyers looking at the same property that you wish to buy. It can be more frustrating to lose bidding if this is already the best property you’ve wanted after long months of searching.
Since a bidding war is just a normal thing in the real estate world, you must be able to have some strategies when confronted on it, or you need precautionary actions to ensure that a bidding war won’t be an option for the property owner. In this article, we’ll give you essential things to keep in mind about bidding wars when buying a home.
1. Make Sure All Necessary Paper Works Are Ready
Before you even think of buying a property, it’s important to ensure that all requirements needed to buy a home are met. If you use a loan, you must secure a pre-approved mortgage, so the property owner would know that you are serious about getting a property.
The seller would no longer wonder where you get funds to buy their home because the pre-approved mortgage is an assurance that you can lend money from the creditor or from the bank to pay for it.
2. Make The Highest Offer
Just like in an auction, the only possible way for you to get the item is if you are the highest bidder. The same is true for bidding wars. However, there are still instances where the seller would not base their decision on the price offered, especially if they follow the first-come basis rule.
Bidding wars are beneficial for sellers because they have the chance to get a higher amount than what they are expecting, but if the money that you have is just enough to pay for the property’s original price, this is where the struggle comes in.
3. Hire a Real Estate Agent
The whole process of searching and acquiring a property is stressful. A Maryland real estate agent, like The Ashley M. Miller Team, Your Home Hero, goes the extra mile to find the best property suitable for your lifestyle and budget.
For example, we can use local market data to check if the current price in a bidding war is worth it for the property that you are targeting. We could even persuade the seller to sell the property to you with just our sales skill!
4. Offer an All-Cash Deal
Entering into a mortgage gives the seller some doubts about if you can successfully get a loan to finance the cost of the property. In some cases, even though you have already shown interest in buying their property, the seller would still entertain other prospective buyers, especially if they don’t have the assurance that you have the capacity to pay.
If you pay in cash, there are high chances to win the bidding war because the seller doesn’t have to wait long to get the money in exchange for their home.
Maryland Real Estate Agent
Bidding wars are usually unavoidable, so you must always be on the competitive side to ensure that you secure the home you want. Using effective strategies and a bit of luck would help in winning a bidding war, but the best way to succeed is to consult a team like The Ashley M. Miller Team, Your Home Hero. Contact us today for all of your real estate needs!
