After months of searching and hoping, you’ve finally found your dream home. There’s just one problem: it turns out to be five other buyers’ dream home as well! You’ve entered a bidding war, and don’t know if you’ll come out on the other side as the winner.
As the housing market continues to improve and inventory continues to be low across the United States, home buyers are running into competition at every turn. The home buying process is stressful already, but adding in the element of a bidding war can make it feel like a rollercoaster.
Before you sell your current home and make an offer on the next, take a look at these tips to prepare for a bidding war, just in case.
Put Your Best Price Forward
Negotiations are common in the real estate world, but in a seller’s market there’s no time to waste. Offering your best and final price at the very beginning shows the seller you are serious and not just playing with a low number to see if they’ll bite. Some homes are priced relatively low to create buzz and stir up a bidding war, so if you’re comfortable offering higher than the asking price that will stand out to the seller. But keep in mind, just because you might need to offer more than the asking price doesn’t mean you should offer more than you can afford. Buying a home is an emotional process, so make sure to stay realistic with your budget and know when it’s time to walk away. You’ll thank yourself in the future when you’re not paying a nightmare of a mortgage.
Make an As-Is Offer
Home inspections can slow down the closing process, especially if the inspector finds repairs that need to be made. An appealing tactic would be to make an as-is offer, meaning the deal is not contingent on any repairs the seller would be required to fix. While an as-is offer is very appealing to sellers, buyers are rolling the dice with a risky situation. Even if a home appears to be perfect, there can be hidden problems beneath the surface that are very expensive. But if you’re willing to take that chance for the reward of getting your dream home, the benefits could definitely outweigh the risks.
Make it Personal
When a seller gets multiple offers, usually the only way to tell them apart is by the amount of money on the table. Many buyers feel an emotional connection to a home, so expressing that to the seller through a thoughtful letter is a way to stand out. If you have young children, describe how you see them growing up there and playing in the spacious backyard. Or if you’re nearing retirement, talk about how you’ve worked all your life to be able to enjoy such a beautiful home. You might strike the right emotional chord with the seller and find yourself in the winner’s circle.
Cover Closing Costs
Closing costs are one of the headaches sellers are usually saddled with during the selling process, especially in a buyer’s market. But in a seller’s market, they don’t have to worry so much. If you really want a particular home, you can offer to pay all of the closing costs yourself. This will make you more appealing and you will seem amicable to work with (which is a welcoming feeling during the high-stress process of selling a home).
Be Flexible with Time
Sellers often are in a rush to move because they need to relocate for a new job or similar circumstance. If you’re willing to seal the deal as quickly as possible, make sure the seller is aware. If they know you can close the sale in three days as opposed to the standard one-month time frame, your chances of winning the bid are greatly improved. But if you can’t move that quickly don’t put yourself in a predicament, especially a financial one. If you’re not able to pay two mortgages until your current home sells or if you need to finish out your rental lease (which could be several months), make the best decision for you–not the seller.
These are just a few suggestions from The Adler Home Team to make sure you get the home of your dreams.
About the Adler Home Team
When looking to buy or sell in Northern New Jersey, you may rely on The Adler Home Team and their intimate knowledge of the distinct communities throughout the region.Jeff & Debby Adler continue to lead with contribution and have served over 1,100 families in their 20 year experience in Northern New Jersey. Through their combined efforts, this team of eleven professionals is very diligent in serving a full array of clients from first time buyers to those seeking their expertise in Residential, Condos, Townhomes,Luxury, New Construction,Relocation, Short Sales, Foreclosures and Rental Properties.By accessing the very best in technology, current market data and creative marketing applications, The Adler Home Team takes every measure to ensure that their clients are educated and provided with the critical insights that meet their specific requirements. They teach, lecture and train at the national level on negotiation skills, marketing and team building. The Adler Home Team is most proud and thankful for their strong referral business that confirms their talents, creativity, professionalism, diligence, knowledge, and outstanding integrity. The Adlers look forward to forming a partnership with their clients to help them reach their goals and make smart business decisions. So, when it comes time for you, a friend, or a family member to make a move, trust the Adler Home Team to win for you. Google View all posts by The Adler Home Team →
Author:Jeff Adler Phone: 201-819-3309 Dated: September 28th 2015 Views: 98 About Jeff: When looking to buy or sell in Northern New Jersey, you can rely on The Adler Home Team and their in...
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