The current housing market is still in a slump, meaning that it’s a good time for buyers because house prices are still relatively low. However, low prices and a surplus of buyers means that you’ll have to compete to get the home you want. Many sellers are receiving multiple offers for their homes, so it’s important to know how to win the multiple offer bidding war. Here are some tips on how to compete as a buyer in today’s market.
Start by doing some research in the area in which you’re looking to buy. This includes looking at houses that are for sale and particularly at houses that have sold. The goal is to figure out the average selling price of comparable (to the home you’re looking to buy) homes in your area. This will help you determine if the home you want is over or underpriced. Knowing the average selling prices in an area will also allow you to understand what is and is not a reasonable offer to make.
It’s imperative that you make an offer that is reasonable for both you and the seller the first time around. This is because, in a market where you’re competing for a home, you may only get one chance to make an offer. Don’t make an offer that you aren’t comfortable with though, because you don’t want to have to worry about backing out of an offer once its been accepted.
Make yourself look more appealing to sellers by getting preapproved for a home loan. Sellers are more willing to work with and accept offers from buyers who have been preapproved for a home loan, because those buyers are less likely to be unable to pay for the home they’re bidding on. Also those buyers, who can afford to pay the down payment with cash look more attractive to buyers.
Avoid making too many contingencies in your offer. When you’re facing competition for a home, it’s advisable to limit your contingencies. Otherwise, the seller might be more inclined to accept another offer that doesn’t require as much out of them during the home buying/selling process.
Don’t skip the home inspection. You don’t have to request that all of the problems you find with the home be rectified in your offer. There’s a difference between wanting and needing something fixed. You should have the house inspected by a home inspector before you sign anything.
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