Right now, there are not a lot of houses for sale, as inventory and new home construction continue to lag behind buyer demand. In addition, low mortgage rates are accelerating demand, meaning that in many situations the sellers are receiving multiple offers. Therefore, it is important for potential buyers to do everything they can to win a bidding war. What are a few ways buyers can give themselves an advantage?
Get Pre-Approved For A Home Loan
The first thing interested buyers need to do is to get pre-approved for a home loan. Because many sellers have options, they might be more willing to take a cash offer because they know the money is going to be there. In order for potential buyers to compete with cash offers, they need to get pre-approved for a home loan, which tells the seller that the buyer has already been approved for a home loan by the lender. Getting pre-approved can make buyers more competitive.
Present The Best Offer First
Because many properties are receiving multiple offers, buyers need to be ready with their best offer at the outset. If they can convince the seller to forgo listening to other offers, they have a better chance of securing the home. Therefore, buyers have to work with experienced professionals who can help them figure out what their budget is, what comparable homes are selling for, and how they can make a competitive offer that could convince the seller to say yes quickly.
Act As Quickly As Possible
Finally, buyers have to be ready to act fast. Properties are not staying on the market as long as they once did. For example, one site says that homes are spending 20 days fewer on the market now than they did one year ago. Therefore, buyers do not have time to wait. If they have trouble getting their work schedules set, traveling to the area, or lining up a showing, the home could be off the market by the time this is done. Buyers must act as quickly as possible.
Get Ready To Win A Bidding War
These are just a few of the most important steps buyers need to take in order to win a bidding war. While the market is hot, it is possible to find a home at a fair price.