Spring Home Buying 2015: 5 Tips to Win the Bid War & Buy Your House This Season
Are you buying your home this spring? Then, you should be ready for some competition because demand supersedes supply.
Thus, we offer you 5 tips to win the bid war and get that house you want this season for your family.
1. Knowledge is Power
Before buying, you must be informed of the properties you will buy.
"Buyers need to get up to speed quickly on market values so they know the right decision when it presents itself. The more quickly buyers can educate themselves, the more successful the home search will be, " David Yocum, a Redfin real estate agent based in Chicago, told Business Insider.
The news outlet also interviewed Richard Seaton, vice president at TTR Sotheby's International Realty in Washington, D.C., who urged that buyers can check sites such as Curbed.com for reference.
When you know the average house value in an area, you have an idea right away if an asking price is relatively within the price range. You can discriminate the bargains from the less affordable. This can give you a guide on how much to bid on a specific property. Getting advice from agents can also help.
2. Sometimes, You Need To Be Offline
Business Insider reported that around 90 percent of people search for listings online during their home-buying process. Thus, only 10 percent are doing the old-fashioned way of going to open houses. Great! That means less competition, right? You now have an edge over people who are only relying on pictures posted online.
Also, Seaton warned, "Buyers should be careful. The internet can tell only part of the story - and it's usually the part the seller wants you to hear."
3. Get Preapproved
Getting financially prepared will help you win a bid war against those who are not preapproved for a loan, CNBC informed. Of course, home sellers would minimize risks and choose you.
"Price is certainly not the only factor sellers are evaluating. They're also weighing the 'risk' of any particular buyer if they require a loan," Avi Galanti, real estate agent of Fairweather Group, explained via CNBC.
It is also essential to have cash in your pocket, as the news site noted. Why? Home sellers are worried that their homes may be undervalued during appraisal, so the loan may not be enough for the actual asking price, noted the site. Thus, be ready to cover the difference with cash.
4. Tell the Seller How You Appreciate the Home
Have you found the house you really like?
Be vocal about your feelings towards the house and let the seller know that, CNBC advised. Just be sincere and the owner will most probably choose you. The homeowner will most likely feel that you will take care of the house that he or she once called home because of your apparent connection with it.
5. Add an Escalation Clause
You may add an escalation clause to your offer if there are other buyers offering the same amount for the property, Realtor.com recommended. However, be very clear about your limit in your letter of intent.
Let the seller know that you will only add an amount if there's an offer similar to yours, CNBC reminded.