You’ve made the decision to buy a home and have put in a few offers, but keep getting outbid. Although this can be frustrating, don’t give up. You can compete in today’s competitive market even if you don’t have the highest bid. For example, we found a house that had only been on the market for one day, but already had offers. The real estate agent told us they were taking bids until noon the following day. We made a full price offer but did not have any contingencies nor inspection requirements. The other bids were above asking price, but they had contingencies and inspection requirements, so the seller went with our offer. When making your offer don’t get too hung up on thinking you need to make one above list price because it’s not always about the sale price.
Tips to win the bidding war without going above budget:
- If you are financing, the first thing you need to do is get a pre-approval from a mortgage lender. Sellers want to know that you can actually purchase the home and makes your offer stand out. This also benefits you in determining your budget when making an offer.
- Focus on homes at the lower end of your budget. By doing so, gives you a bit of wiggle room when making an offer if you do have to go slightly above the ask price.
- In today’s market, it is important to make your “best and final” offer in the beginning. These days, there isn’t much negotiating going on. If it isn’t your best and final, you probably won’t get the house.
- If you do find yourself in a situation where you need to offer above list price, consult with your real estate agent and let him/her help you determine a good offer price. Your agent will be able to pull list and sale prices for comparable properties that have sold within the past six or more months. He or she can determine the typical amount above list price, i.e., $5,000, $10,000, etc. that have occurred. You certainly don’t want to pay more than you should and end up with little to no equity in the house because you paid more than the market can bear.
Get your financing in place, work with a knowledgeable real estate agent, do your homework and you will get that home! For all your real estate needs, contact Stutesman Action Realty today!