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What to Do When You’re Involved in a Bidding War

On Behalf of | Feb 19, 2018 | Firm News |

If you have suddenly found yourself in a bidding war for your dream home, you still have a great chance of getting it. To ensure you win this war, use these tips.

Tips to Help You Win a Bidding War

A bidding war may sound like an intense monetary battle where only one buyer prevails. In reality, it’s a lot more manageable and less stressful than that. It’s not like fast paced action where the highest bidder gets the goods. In fact, money isn’t the only thing sellers are concerned about. To help you win your bidding war, use these tips.

Figure out How Much You Can Spend

Before even starting a home search, start by setting a realistic budget. This will help you not only find homes that you can afford, but it can also help you stop yourself from making rash and emotional decisions. Let’s say you and another interested buyer are trying to win the home. Make a solid and realistic bid for the property in order to have a good chance at it. If the other buyer makes a very high bid that surpasses your budget, make the smart choice and walk away. In this scenario, knowing your budget sets a boundary that will keep you from going overboard. Once you know how much you can realistically spend, use these tips to make your offer stand out.

Have Your Paperwork Ready

When looking at homes, it helps to have your paperwork ready to go. Not only does it show serious interest in acquiring property, if it comes down to a bidding war, you are a better candidate. This is because being pre approved for a mortgage and having other important documents in order will make the transaction faster. If you haven’t been pre approved for a loan, a seller may not even consider your offer because there’s nothing to back it up.

Ask Plenty of Question

If you have a real estate agent helping you through the home buying process, have them ask the sellers or their agent plenty of questions. This will help you understand the seller’s position much better, giving you an advantage when it comes to making an offer. This will also help you look more interested in the property and more approachable. Be specific when asking questions so that you can understand their planned moving time frame, their contingencies, and other important information. Since you’ve worked so hard to secure your dream property, don’t forget to take one final step to secure your investment. Be sure title insurance is part of your deal. To purchase your title insurance policy in Westboroughcontact Home Key Title at (508) 475- 5502.

Work With the Seller

Once you’ve been able to get information about the seller, use this to your advantage. If you’ve found out they need to move quickly because they’re starting a job in another country soon, offer to make the closing process as fast as possible. Let them know your paperwork is ready to go and that you’re available for negotiations. You can even ask to perform a pre inspection of the home. This isn’t meant to pressure them to choose you, but it is a great option because if they do decide to sell you the home, you won’t have to wait around for the inspection because it will already be done.

Talk to the Listing Agent

Communicating with the listing agent is a great way to make yourself more approachable. Not only will the seller feel more comfortable communicating with you, it can even help you stand out above the rest. If the listing agent is receiving multiple offers at once, yours will stand out because they will already know who you are.

Avoid Demanding Too Much

Allow the seller to have the upper hand in the transaction. They are, after all, the ones who get to select the buyer they want to sell to. Most sellers will be more welcoming of offers that are clear, concise, and that don’t demand too much. You are free to negotiate certain things, but don’t make the situation more difficult by making things hard for the seller. If other buyers are offering close to the amount you offered but have fewer demands, they may choose them over you.

Follow up Even If You Didn’t Win

Even if you didn’t get the home, don’t give up just yet. Have your agent keep in contact with the sellers just in case their deal doesn’t go through. Buyers will sometime make offers on multiple homes so that they can have a fallback if they don’t get their first choice. If this is the case, you can still have a chance at the home.

Purchase Title Insurance in Westborough

Before signing the closing paperwork on your new property, be sure you have secured your investment with a title insurance policy. Learn all about the importance of title insurance in Westborough by contacting Home Key Title at (508) 475- 5502.