So you've found the right home, it has all the features you want, the price is right ,and it is in the neighborhood you want. Suddenly you find out there are multiple offers coming in on "your perfect home." What do you do, walk away or get involved in a bidding war? This can be a stressful and sometimes even heartbreaking experience,but knowing how to prepare yourself before entering a bidding war may get you the house of your dreams without breaking the bank.
Know Your Budget
Knowing what you can afford and your target price can really prevent you from making a bid that you may not be able to honor. The best way to do this is to get pre-approved for a mortgage before looking for a home.That way you will be able to act quickly once you find the right home.
Know Its Value
While the home may be the house of your dreams, paying considerably more for it than it is worth is never a wise choice. To avoid getting into this situation, do your homework before making an offer. Have your Realtor show you the recent closed and pending sales of similar homes that sold in the area to determine the fair market value.
Know What You Are Paying For
Determining what features actually come with the house, and how much you'll have to spend to get it in livable condition will give you a clearer picture of what you are paying for, and what your budget can hold.
Bid Smart
The fears in any bidding war are that you may bid too low, or that multiple bids may raise the price higher and higher. To prevent this from happening your best approach is to bid right the first time. Make your best offer the first time. Bidding slightly over asking price or odd amounts the first time can sometimes make the difference between your bid or another being the highest.
By being armed with these tips you may end up with the perfect home at the price you are prepared to pay!
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