Just like in a real war, you need to be prepared for a bidding war by having a smart negotiation plan, hiring a great agent and doing your homework.
Upon checking out numerous houses for sale and landing the best one after a long time, the last thing you want to hear is that other people think it’s perfect for them, too. Nonetheless, real estate is not real estate without a few (or a lot of) bidding wars, and you have to know how to manage the situation to emerge victorious.
1. Get pre-approved for a mortgage – A smart real estate buyer knows that finding out if you can afford a house and learning your price range for a home will rely on you getting a mortgage pre-approval. An even smarter buyer knows that this is not the only advantage you get; when you make an offer with a pre-approval to back it up, the seller might feel more comfortable considering your offer since you are serious about buying.
2. Recognize the “war” part in a bidding war – Don’t offer to buy a house for exactly the amount that the seller is asking; go a bit higher if your budget permits you to do so. Don’t get too excited, though; be sure that you don’t just toss your entire pre-approved amount out there. Try to find out what amount the other buyers are proposing for the home, and then put down an offer that will go slightly above theirs.
3. Don’t make an offer with conditions attached – If you want to annoy your seller, give them an offer full of conditions like how you’ll propose a price now but that you have to sell your home first before buying theirs. If you do this, don’t expect a buyer to wait until you come around, particularly if they are getting similar offers from buyers who are ready to buy the house now. Until you are definitely prepared to buy the home the minute the seller says yes, don’t make an offer just yet.
4. Find out how much you really want the house – It’s no secret that homeowners who are putting up their house for sale will go to all lengths to make their homes look nice for buyers. The over-the-top furniture, elaborate curtains and expensive rugs are just for show, so be sure you fell in love with the house itself and not the home staging. Once the sale is finalized, you might get disappointed if you realize that these things aren’t included in the house.
5. Do a double-take (or a triple-take) on the house – It might have only been the most acceptable house that you’ve seen after viewing a bunch of horrendous ones, or it was actually the first and only house you looked at. Don’t make a hasty decision; if the feeling starts to fade after revisiting the house more than a couple of times, then maybe it’s not the house for you. Another benefit of repeated visits to the house is that the seller will sense that you really like their house, so they will feel confident selling it to someone who loves it as much as they did.
When you engage in a bidding war, prepare for it the way you would for an actual battle: with good negotiating tactics, a great deal of research and a trustworthy agent by your side. And don’t leave home without your secret weapon: a mortgage pre-approval.
Staying Safe in Your Apartment
If you’re still in the process of looking for an apartment, make security one of your priorities, and be sure to let the landlord know any safety issues you may have about his apartment. While renting a unit, don’t be a victim to anyone; always pay attention to the things that you’re doing and keep an eye out for anything and anyone shady around your apartment.
Relocating With Your Children
Taking these suggestions to heart will help make sure that they won’t dread moving away and will look forward to it instead.
Assessing a Buyer’s Purchase Offer
Homeowners who put their houses up for sale before know all too well that you shouldn’t expect to get exactly the amount that you put on your property. With this in mind, some sellers might settle for a buyer’s offer even if it’s less than what they want, particularly if their home has been in the market for a long time.
