Finding the perfect home to purchase isn't easy, but if the buyer feels confident in the future about the buy, they're willing to go the distance. Being the most competitive time for the housing market in history has buyers stretching their budgets in order to insure they win the bidding war for the home of their dreams.
Just listed properties seem to be getting more and more flocks of people interested as the buyer demand soars and homes for sale remain at a record low. This lack of inventory has home prices hitting new highs and mortgage rates even higher. The market is moving fast so buyers need to be ready to compete if they're going to win the bidding war for the home by not only already being pre-approved, but be committed to a mortgage.
With the market at its current standing point, more options are becoming available to buyers to ensure they get the purchase such as lower down payments, adjustable rate loans or ARMs that offer lower rates.
If you are struggling in a bidding war to get the home of your dreams, here are a few tips on how you can make your way to the top of the list.
- Get everything to your lender up front. Speed is the key so making sure your lender has everything needed to underwrite your file ensures that you can close fast.
- Add to this one. Write a personal letter outlining why this house is important to you and/or your family
- Do what the seller wants.
Cash Rules Everything Around Me is not just a great song, but the biggest way to win almost any bid. Cash says you are serious about the purchase and want it now. Coming with cash can actually double your chances of winning a bidding war, according to Redfin, a real estate brokerage. The home buying process cuts in half when someone is able to make an offer with cash and this makes the seller very happy. You can always take out a mortgage after the deal is made, but skipping a few steps during the process makes it a little easier on everyone.
2. Tap Into Your Feelings
The home buying process is emotional for everyone. Tap into these emotions and let the seller know a little more about you, your family and what you plan to do with the home.
3. Be Flexible
Go with the flow and let the seller know it's all about what they want. Don't make them wait too long or rush them out. Let them rent out the place for a few months or close in a week. They want to feel that the ball is in their court, so give them the ball.
If you are interested in learning more about how you can win a bidding war for the home of your dreams, contact one of our mortgage specialists today!