Finding your dream home may have been easy, but there is always that chance that it is someone else’s dream home too. First, you should have already talked to a financial adviser and broker and even used a house payment calculator to make sure you can afford your bid on your home.
You should also figure out how high you can go in case you get into a bidding war with a competitor. There is still a shortage of homes on the market overall, and homes are selling quickly, so there is always a possibility of a war. There are some steps to take or tips to try to try and come out victorious if you find yourself in this situation.
If you are able, pay for your home in cash. As the saying goes, “cash is king.” Sellers would be more likely to pick a buyer dealing with cash because they don’t have to worry about that potential buyer actually receiving the loan they were promised and possibly not getting it in the end. They can see the cash in their hands and have less to worry about when it comes to selling their home.
If cash isn’t in the cards and you need some financial backing, make sure you get pre-approved first. You should pick a lend with competitive rates and have the pre approved paperwork ready to go. You will be able to show the seller how much you are qualified to borrow.
Also, as you are in the process of buying your home, make sure you have at least a vague understanding of the current market. You don’t have to be an expert, but you should have experts on hand to explain to you what the current situation is when it comes to selling and buying. You should know what houses are available and how much sellers are asking for what you want. If you understand how the market is acting, you will be ready to strike once the home you want is up for sale and may just beat out potential competitors.
If you are able to, make a large deposit when you make the offer. If you can show them that you can put down 10% or 20% instead of the typical 1% of the purchase price, you may be the buyer they pick. This money also goes toward your down payment and closing costs, so it will be money well spent.
You can also win a seller over if you make the sale personal. You can write them a letter about why you love their home and how your family would make memories in it just as they did. Selling a home can be a very emotional time for people, so knowing that their home is going to someone who will cherish it and make it their own may seal the deal.
Hopefully this tricks and trades work and you secure your dream home, but if you do come in second, make sure your real estate agent stays in touch with the listing agent or the seller’s broker. There is always a chance the sale falls through and you want to be at the ready. Your home is out there just waiting for you to make the move.