Purchasing a home comes with great excitement, but can also be accompanied by unforeseen events whether you are a firsttimer or a seasoned buyer. Unforeseen bidding wars can lead to pain and frustration, and these days, bidding wars are a regular part of the house buying process. Each year, more than half of buyers in the country get caught in bidding wars when trying to buy their dream home. By understanding the steps necessary in the negotiation process and planning well in advance, you can greatly increase your chances of securing your dream home. Here are 5 ways to compete in a bidding war and turn the odds of securing the property in your favor:
1. Find out Exactly How Hot the Property Listing Is
Most property buyers start engaging in a bidding war without figuring out what other buyers are offering, but you can easily know how desirable your preferred apartment is. Generally speaking, you can easily tell if a property is popular or not. If they plan an open house on a given Thursday, for instance, that means that there are many offers being made, and they are ready to accept the final bid on Friday.
2. Cash Is Vital
Those with significant cash reserves have generally done well in the real estate market. Cash gives you a competitive edge over other buyers. However, that does not mean that you can’t excel without hard cash, but it can be extremely helpful. That’s why it is becoming more and more popular in the investing world. Studies show that allcash deals account for over 40% of the latest property sales in the market. That figure is up significantly compared to past trends. As an investor, it is always recommended to keep up to date with the latest real estate news and market trends. Again, as an investor, you would like to show the ability to secure the funding, which in itself can help you to gain the trust of sellers.
3. Make Paperwork Your Friend
It is advisable to be well prepared with all the paperwork. You want to be able to show your financial statement, your references and other pieces of information that can help you in the bidding war.
4. Remain Flexible
While some people are impatient to close the deal, others are not. Especially in highstakes deals, it can be extremely helpful to remain a bit flexible. Entertaining different options as regards inspections, financing and leasing can help make your offer more appealing than the rest.
5. Connect With the Seller
Generally speaking, most sellers have an emotional connection to their home. Understandably, they want the buyer to take care of the house as much as they did. The best way to show the seller that you truly love the home is to describe what you love about the property, why you would like to live there, and why you think the home will suit your lifestyle. This will win over the seller, and make your offer stand out so you can get that dream home before anyone else!