Winning a Bidding War

Coming up with a winning offer can take some guts. Here are some tips for dealing with multiple competing offers on the home you want.

Get preapproved for a mortgage. Not a prequalification!! A preapproval from a lender is a strong indicator of your ability to get a mortgage. Without this assurance, the seller may disregard your offer.

Work with a real professional. An experienced real estate agent can alert you about listings about to hit the market. Plus, they will guide you through the process. Working with a mortgage broker who knows the local market is a plus.

Everyone wants it, but they all can’t get it.

 

Do Not LOWBALL. Figure out the most you can afford to pay for the home first, then make a strong offer. But. do not let emotions run high and get yourself into a position that you’ll later regret.

If you do wind up offering more than the list price, know that your lender’s appraisal may come in lower, leaving you responsible for the difference..

Consider waiving the mortgage contingency. In a sellers’ markets, offers that are contingent on the buyers’ ability to obtain a mortgage are less appealing to the seller.  If your financing falls through you could lose your deposit money. Speak to your attorney about this.

Cash is king. If you can, make a cash offer you are way ahead of the pack.