September 26th, 2018 4:02 PM by Jackie A. Graves, President
"Bidding War" — it can be an intense
and scary term for something that isn't actually a war at all. Rather, it's
simply your homebuying strategy vs. competing strategies to win the home you want
to call yours.
market is competitive and bidding wars are not uncommon. In fact, in 2017,
nearly one in four homes sold for more than asking price due to buyers
out–bidding each other.
So, how do
you "win" this war? There are different strategies that have proven
effective over the years, some more challenging than others, but all worth
Get Pre–Approved. By having a pre–approval letter from
your lender, you're telling the seller that 1.) you're a serious buyer, and 2.)
you've been pre–approved for a mortgage by your lender for a specific dollar
amount. In a true bidding war, your offer will most likely get dropped without
Get Emotional. Break
out your pen and write an emotional "Dear Seller, Pick Me" letter. This
strategy has proven to be effective, increasing your odds in some markets by
more than 50%. Emotions play a big role in "home sweet home" and your
letter puts a live person, and a serious buyer, behind the transaction.
Get Cash. In
real estate, cash is undoubtedly king and an all–cash offer can more than
double your chance of getting the home. This is because all–cash offers are far
more streamlined with far fewer possibilities of falling through. However, this
tactic is unrealistic for most families, so back to #1 and #2.
local market and seller's situation is different, you'll want to rely on your
real estate agent's professional advice. Also, be sure to visit My Home by
Freddie Mac® to learn more about
the homebuying process, from soup to nuts.
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