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5 Tips To Win A Bidding War For Your New Home
You might only get one shot at this. Needless to say, it isn't the time to let your uncle take his new real estate license out for a test run. Lean on an experienced buyer’s agent, such as The Storck Team, who’s handled multiple-offer situations. Sellers and listing agents want to see you have a mortgage approval letter and can close on the loan quickly. Buyers can include documents that showcase their ability to cover closing costs and a sizable down payment. Others might make a larger-than-normal earnest money deposit to underscore their seriousness. The goal is conveying legitimacy and ease. The seller’s biggest fear is the deal falls apart at the last second, If you can share with that seller’s agent that you’re going to make the transaction go smoothly and worry-free, that’s going to help. This is also not the time to find out that problems with your credit could be an obstacle to buying the home you want. Checking your credit about six months before you expect to buy can give you time to correct any errors or improve on any issues that could put a damper on your plans. Pay in Cash If you can manage, nothing says “easy” quite like an all-cash offer; such offers account for about 40% of recent home sales. There’s no mortgage process, no underwriting approval and no worrying about financing falling through. That’s certainly not an arrow in every buyer’s quiver, but cash offers will often put a swift end to any bidding war.
Be Careful with Contingencies
Purchase offers often contain clauses that make the sale contingent on an appraisal or on the buyer’s ability to sell their current home. Sellers can see them as potential roadblocks. Buyers with the cash to cover a low appraisal or two mortgage payments may want to consider waiving those contingencies. Real estate agents may also suggest including an “escalation clause” in the contract. These basically say the buyer agrees to exceed the highest competing offer by a specific dollar amount. For example, you’ll pay an extra $5,000 on top of the most lucrative offer, or up to an additional $10,000 in increments of $2,000. Good agents will also try to discern the seller’s preferred closing date and work that tim eframe into the contract. You may be able to press your lender for a quicker turnaround on your loan file. That’s not always possible, and it’s likely to depend in part on how quickly you can provide financial documentation at the outset.
Sometimes it’s about more than just the numbers. Many agents urge their clients to write a personal note to the seller. Be specific in conveying what you love about the home and your plans for it. Even though you have a process that’s mostly anonymous, you’re trying to create a bond that puts yourself in the best light, My advice is that personal touch has helped clients win bidding wars time and again, even when their offer was the least competitive.
Home buying is invariably an emotional experience. The time constraints and competitiveness of a multiple-offer situation only heighten the tension.It’s important to step back and be honest with yourself. What’s more devastating – missing out on your “dream home” or overpaying by $20,000 to get it? The goal – at least, ideally – is to avoid regret either way. You want to make sure that, at the end of the day, you’re not going to regret your decision.
Tatyana truly understands the dynamics of selling homes in the Denver Metro real estate market and is an expert at educating her clients so they can make the best and informed decisions for their need....