Nothing strikes terror in the hearts of buyers than a bidding war on the home of their dreams. Trying to strike a balance between what they can afford and beating the competition can be tough. It is not always necessarily who has the most money for a buyer to have their offer accepted over another. If a lower offer means less hassle for the seller. What type of financing you will be using can play a big part in a seller’s decision to pick your offer over the others on the table.
For you as a buyer getting pre-approved for a mortgage and having your loan paperwork ready to go for a fast close can be the one thing that sets you apart. Though shopping around for the right loan and interest rate are advisable, finding a lender who has experience and know how should never be overlooked.
The old bait and switch is still out there when it comes to the “lowest rate” and a buyer should never be so focused on rate that they overlook working with a loan officer that is knowledgeable and has integrity. The worst thing that could happen is securing your dream home with an accepted offer and then finding out that you cannot secure financing.
Here are other some tips to win the bidding war.
•Get your mortgage loan underwrote in advance with the property being “To be determined.”
•Be flexible with contingencies but not fool-hearty. Be smart on what you can give up.
•Be first. Get your bid in before anyone else.
Lastly, in the grander picture, do you really want this home? Do you see yourself there in five years; does it work for your growing family? If so, be ready to outbid your competition, and remember that most sellers have a special place in their heart for the home they are selling; low ball offers my quite frankly insult them, and you may not stand a chance of winning the bidding war after that.