4 Ways to Win a Real Estate Bidding War
The housing market is highly competitive right now, making the process challenging and frustrating for buyers searching for new homes. That's why you must have the proper real estate strategy to ensure you can successfully secure the property of your dreams. Here are a few steps to improve the chance that your offer will be accepted.
How to Make a Successful Offer on a Home
1. Get Home Loan Preapproval
Loan preapproval is the process of getting approved for a mortgage before you start looking for a home. You provide the lender with information regarding your income, assets, and level of debt. The lender verifies this information and performs a background check to determine your creditworthiness.
From there, you'll receive a letter that states the exact loan amount you would be approved for. Sellers love preapproval because it ensures that you can buy the home you're interested in.
2. Appeal to the Seller
Have your agent ask the seller about anything else you can do that would sweeten the deal. For instance, you could offer to waive the inspection if you know the seller has already done several renovations over the years and the house appears in good condition. Or, if the seller needs extra time to move out and doesn't want to close quickly, you can agree to those terms.
3. Make a Cash Offer
In addition to loan preapproval, many sellers also find cash offers very enticing. Cash offers simplify the closing process and provide reassurance since sellers won't need to wait for the lender to release funds. Making a cash offer can even save you some money, as the owner may be willing to forgo a higher offer to accept the simplified cash bid.
4. Include an Escalation Clause
If a piece of real estate is hotly contested, escalation clauses can put you in a better bidding position without the risk of overpaying too much for a property. For example, you may choose to add $1,000 to every competing offer a seller receives, up to a specific limit. If there are no competing offers, your initial amount will be accepted.
Working with a skilled real estate agent can also help you land the home of your dreams. Dixon Team Keller Williams has dutifully served residents of Ooltewah, TN, since 2006. Wendy Dixon and the rest of the team have extensive knowledge of the local real estate market, helping them find the perfect properties for clients. This skilled team can also help you navigate the closing for a smooth, stress-free process. Visit the website to learn more about Wendy and her team, or call (423) 702-2000 to schedule a consultation.
