Avoid Getting Outbid On The Home Of Your Dreams

How to avoid getting outbid on the home of your dreams. The real estate market is transitioning. It is still a buyers market, but in some areas inventory is low and this creates “bidding wars”. When many buyers are competing for the same homes, this drives up prices. In many cases buyers are competing with other buyers who are using all cash. There are a few ways to avoid losing your dream home to a bidding war: 1. First, you should be working with a buyers agent, make sure this agent knows that you want to see any new listings to the market. You should also put a deadline on your offer. In other words, the offer is only good for X amount of time. This avoids having the other agent solicit higher bids from other buyers. 2. In a competitive market it is very important to take the step to become pre qualified by a lender before you start your home search. This saves you valuable time when making your offer. To make yourself an attractive buyer you should offer a high deposit binder, as much as 3% of the purchase price. Also, 20% down payment is often required. 3. Have your agent do a Market Analysis on the property so you know what the property is worth. The seller wants to get the highest price possible for their home so be prepared to bids high, but not higher than the home is worth. 4. In today’s economy, many sellers are doing so because they can no longer afford to stay in their homes. So, you shouldn’t ask for seller concessions or help with closing costs. Also be open to the needs of the seller, like if they need time to find another place to live or a fast closing because they are no longer paying their mortgage.