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In today’s housing market, inventory is very low, and bidding wars are on the rise. Currently, the average home sale had 3.7 offers, and houses sold in an average of just 21 days.
Those are staggering numbers and are a testament to how incredibly competitive the housing market is in Washington, Idaho, Oregon, and Colorado, as well as the rest of the nation.
When supply is very low and demand is very strong, competition among buyers can be fierce. That’s why you’ve got to be prepared for the likelihood of a bidding war when it comes time to put in an offer to buy a home.
The idea of being in the middle of a bidding war and competing against other buyers for a home sounds daunting. The good news is that there are things you can do to increase your odds of coming out the winner.
When you find a home you’d like to buy, here are 4 ways to make sure you’re ready for a bidding war.
Getting pre-approved for a home loan is one of the first things you should do before you even start your search for a new home. There are several reasons why you’ll want to take this initial step.
For starters, a pre-approval will ensure that you are financially capable of taking on a mortgage. That way, you won’t get stuck with a financial commitment you can’t handle.
Further, a pre-approval will tell you how much you can afford in a home purchase. After taking a look at your financials, your lender will be able to determine how much of a loan you can get approved for. With that figure in mind, you can focus on properties that fall within your budget. Not only will this save you time and effort, but it will also save you from disappointment.
Plus, being pre-approved will show sellers that you’re a serious and qualified seller. And in today’s atmosphere where multiple bids on home are commonplace, being a qualified buyer will help, as sellers will likely not want to even bother with anyone who hasn’t displayed their financial qualifications.
When it comes to winning a bidding war, there’s no room or time for much negotiating. The typical tactic that buyers practice is starting with a slightly lower offer than they’re willing to spend on the home, and wheeling and dealing with the seller until a final offer is agreed upon.
In the case of a bidding war, you’ve got to put your best foot forward. That means you should ideally offer the most you’re able to spend on a home purchase right out of the gates. And while you’re at it, make sure that the earnest deposit amount you offer is also attractive.
Further, consider accommodating the seller as much as possible when it comes to the closing date, as long as it works with your schedule.
When the seller is presented with several offers, you want to make sure that yours stands out. That’s why you’ll want to present your best offer right from the get-go.
In a multiple offer situation, time is of the essence. You should go into the offer prepared for anything. That often means having your finances lined up, having your earnest deposit submitted along with your offer, and ready to make a move right away.
Bidding wars can be chaotic, so it’s best that you prepare to move fast in order to increase the odds of coming out the winning bidder.
When it comes to buying a home — especially when it involves a bidding war — teaming up with a local professional is imperative. Your real estate agent will have experience not only with finding the right homes for buyers in the area, but also with navigating a bidding war situation.
A real estate professional can help you get prepared for this scenario so you are as successful as possible.
Are you ready to get into the real estate market in WA, OR, CO, or ID? If so, let’s connect to make sure you have the guidance you need in this competitive market. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Get in touch with Sammamish Mortgage today!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.