Congratulations on reaching the point where you’re financially secure and have identified your dream home. Yet, in a competitive seller’s market, other buyers may pose a challenge. Fear not! We’ve compiled a range of strategies to empower you in a bidding war and increase your chances of securing that dream home.
1. Get Pre-Approved: Your journey into homeownership begins with securing a mortgage pre-approval from a lender. This step is critical as it:
- Confirms your price range, providing clarity on affordable homes.
- Demonstrates to sellers your serious intent to purchase.
- Sellers prefer pre-approved buyers, assuring them that you have the necessary funds at closing.
2. Limit Contingencies: To stand out, consider limiting contingencies, which are conditions that must be met before finalizing a sale. This approach signals to the seller that you’re prepared to pay additional costs at closing if the home appraises for less than the agreed price.
3. Make a Competitive Offer: Research recently sold properties with your agent to gauge a fair offer. Avoid lowball offers, as they may be perceived as insulting. Offering a reasonable amount aligns with market expectations and increases the likelihood of a positive response.
4. Increase Earnest Money: Demonstrate your commitment by offering a more substantial earnest money deposit. Sellers often prefer buyers who put down a larger deposit over those with less. A significant deposit instills confidence in the seller, showing that you’re less likely to walk away from the deal.
5. Offer a Quick Close: Sellers often prefer a quick closing, typically within 30 days. To gain an edge, propose a 21-day timeframe. Some sellers prioritize a speedy close over a higher offer, so ensure you have the necessary funds ready to fulfill your promised closing date.
