When the real estate market heats up in the neighborhood of Bend, Oregon, the amount of home inventory that is available plummets. This problem is great for sellers as they can get better deals for their houses. Unfortunately, for buyers, it can lead to bidding wars. If you have your heart set on a certain property that you know may be popular and want to win a potential bidding war, here are a few tips to get the seller to consider your offer first.
Get Lender Preapproval
Preapproval is the top priority for buyers. Sellers will give your bid serious consideration because they already know that you have all your financing in place. So you are ready to move forward with the next steps at the closing. For a seller who is motivated to get rid of their property as soon as possible, seeing a preapproval letter can seal the deal.
The less hurdles that the seller has to jump over to get to the closing table, the better. The more demands you make, the less that the seller will want to work with you, especially if another buyer isn’t asking for the same demands. Types of contingencies you may skip are mortgage contingencies and certain repair demands that are easy to make and low in cost, as you may just want to do the repairs yourself. If you are purchasing a newer home, you might consider skipping the home inspection. Yet if you are purchasing an older home, you don’t want to skip this detail as you may find a serious issue in the house.
Be Prepared to Go Over the Asking Price
There is a greater chance of this happening during a bidding war. Make sure you know the actual value of the house and be aware of how much you can go over that price to win the property if there is another buyer who quoted the seller’s asking price. Yet also be comfortable about knowing when to cut your losses and walk away to find a different home.
Be Flexible About the Closing
Sellers have different reasons why they are putting their homes up on the market. They may need to move immediately for a new job offer, or they may use the sale proceeds from this property to put toward a different house. You may be able to offer more flexibility on when you can close on the house. You can offer to close quicker if the house is vacant and the seller wants to avoid making another mortgage payment on the property. If the seller needs more time to move, you can offer to give them that extra time to find another home.
Bidding wars can happen on any house. Sometimes you will win at them, and other times you will lose out. Don’t get discouraged as you can use these tips to increase your chances of getting the house you want.