Buy a House – Stop the Bidding War
Today’s home buyers see fierce competition like no others have faced in the past. Though inventories have increase during a few weeks this year, they continue not to keep pace with the homes taken off the market by current home buyers. This creates a bidding war for homes new to the market.
Below you will read the top fifteen smart tactics home buyers should consider, ensuring them winning the bidding war for homes they are facing. These tactics are not all-inclusive but meant as a guideline to give you a level field on your next offer on a home.
- Check emails hourly to check for you update from your Personal Organizer established by your Realtor.
- Do not look at homes only on the weekends. Get out there every day and look at what new has come on the market. Don’t wait for an open house.
- Make sure your Realtor is LOCAL and well-respected and well proven. Your Realtor needs to have the lay of the land for you to succeed.
- Stay in the “good grace” of the listing Agent of the home you are buying. You don’t need to overdo it, but do “play nice” as it will pay off in the long run.
- Don’t let other buyers intimidate you no matter what they say they’re going to do. Talk is cheap and only serves those who are speaking. Don’t get sucked into their game.
- When you can, always buy the “worse house” on the block. You will maximize your profits, be allowed the opportunity to have a house in a style you want, and cut your competition considerably.
- Talk at least weekly if not more to your lender. Get an update on market conditions and rates trends.
- Always inspect what you expect. Check the internet for current interest rates to make sure you’re getting the best mortgage available. It stands to reason this holds true for any cost you will have with the home buying process.
- Line up an appraiser with your lender before submitting an offer. It’s good to go into negotiations with an appraisal time frame that is short. Most offers will ask for a 10-14 day contingency on an appraisal. You look as a stronger offer with a 4-7 day time frame.
- Know who the neighbors are and what their homes are worth. If it’s a well-established neighborhood you can expect your new home value will keep up a good growth in the future on desirability and worth.
- Hire your inspectors ahead of time and have them standing by to do their inspections within a few days. This makes for a stronger offer and less apprehension on the part of the sellers. If there are already reports available from the seller and are current then read and approve them with your offer. Do not buy a home without knowing its condition unless you plan to tear it down and rebuild a new home in its place.
- If you can write your offer from the seller’s position even if it means to bend the rules a bit. For example, offer them free rent for 30-60 days and close the escrow in 7 days. This is not the standard escrow period most sellers see, however, it sure makes it clear you want to buy their home and you are willing to make it easy for them.
- Included with your offer the family photo and letter is ALWAYS a good call. Home sellers want to sell their home to face of people they can see living in their home not just a group of paper placed in front of them to sign. When previewing the home look for things you have in common and write about it in your letter to the sellers. Connect with the sellers by being passionate but not phony!
- Cash is always king! If able, make your offer with financing terms of “all cash”. That would mean either you have done your homework and arranged for everything needed to close an escrow in 7 days or you have a boat load of money already in the bank. Either way you will be sitting in a good place.
- Finally, keep your focus on the solution/goal. Don’t get distracted by homes you can’t afford. Don’t even go look at them…you’ll be wasting your time if you do.
If you use these 15 smart tactics you will win the bidding war when buying a home. It can be fun and entertaining if you work these tactics properly. More importantly if these tactics don’t work when you try them…get up and try again. You are ahead of most home buyers out there and your success is imminent.
Good luck on your home buying process.
If you would like your own Personal Organizer you can get one at https://www.sfbayhomes.com by clicking on the orange button and signing up for one. Once I receive your request I will give you your own Personal Organizer and you will get an update daily around 4 am. You can come back during the day to see if any new homes have come on the market if you want.
As always there is no cost nor is there any obligation. Our intent however, is to show to you what a benefit it is to have our professional counsel you will want to hire us when you do have a need of a Realtor. Why not put our 38 years of experience to work for you?Tags: buy a house, buyers, buying, condo, home, House, housing, Redwood City, sotheby's