March 21, 2012
What’s a Bidding War and How Do I Win One? Part One
Oh no, you’ve finally found the PERFECT house after 18 months of laborious searching and you’re ready to put an offer in — but so is somebody else! Here’s the first in a two-part serious about being prepared to deal with a bidding war situation. The following are some tips to get you ready to for battle.
1. Suit up
Two words: Mortgage pre-approval. Picture it, next week, this year – it’s a beautiful day, you’re walking to meet the sellers with a spring in your step and a confident smile. Why? You have a pre-qualified loan certificate, which proves that you’ve got money to back up your offer. It says that you are serious about buying this property.
2. Scout the scene
There’s a reason why scouts are sent to survey the battlefield – you’ve got to know what you’re up against. Knowing what the fair market value of the homes you’re interested along with similar houses in other prospective neighbourhoods is a must. You’ll know what you can afford, what you’re able to offer and make a prediction on what others may offer; making it clear what kind of bid you’re ready to put forth.
Making a firm offer without complicated clauses, conditions or terms will make your bid that much more attractive. Consider the difference between two offers at the same price but one of them includes the condition that the purchaser won’t buy until he/she first sells his/her property. Exactly! Who wants the drama?
4. Knowing is half the battle
Get all the facts before you make your move. The house of your dreams may seem perfect but it’s wise to have it certified as sound by a professional. Plan on for paying for a pre-buy home inspection so you will know exactly what you’re getting. Finding out that the house will require extensive repairs or need to be brought up to code before you make a decision can save you from a lot of future headaches. Read this enlightening article about what your home inspection may be missing.
5. Don’t fall for a decoy
They say that staging a house can lead to bidding wars. Remember that the seller probably has his/her home set to appeal to a broad range of buyers so forget the smell of baked goods in the oven, the fresh flowers and fancy furniture – you’re there for the house. Try to picture it as a blank slate that will suit your belongings and your lifestyle. If you’re really interested in a property why not come armed with the measurements of your furniture to make sure they will fit well? It’s up to you to know if the house is right.