A bidding war is just one of the many challenges you may face when buying a home. A bidding war occurs when more than one buyer submits a bid for a house.
When this happens, the seller can sit back and let the buyers bid against each other, driving the price up. The last thing you want is for the price of a house to go up, so you’ll want to avoid a bidding war if possible. The best way to do this is by making sure your initial offer is a strong one.
You can do that by doing the following:
- Avoid lowballing the seller – Don’t try to lowball the seller. When you do this, you waste valuable time, giving other buyers a chance to submit a stronger offer. Make an offer you think the seller will actually accept. This can reduce the risk of a bidding war.
- Make your offer quickly – Buying a house is a huge decision and one that people typically want to think about first. However, the longer you take to make up your mind, the more likely it is that someone else is going to come along and submit a bid. If you see a house that meets all your needs, you should make your offer quickly. The faster you submit a bid, the more likely you are to avoid a bidding war.
- Provide proof of funds – Proof of funds (such as a mortgage pre-approval) strengthens your bid. Sellers are more likely to accept offers on the spot if they know the buyer has the money.
- Remove contingencies – Removing certain contingencies, such as minor repair requests during the inspection, can move the process along and prevent new buyers from coming into the picture.
Use these tips to avoid a potential bidding war when buying a home. For more advice on navigating the real estate world and buying a new home, contact us at Randy Lindsay today.