Buying A Home In A Seller's Market: 3 Tips To Help You Place The Winning Bid
There is no doubt that the real estate market is currently a seller's market. However, with interest rates being so low, many home buyers are finding that this is still a great time to buy a new home. The only problem is, with so many interested buyers and a relatively small supply of homes currently on the market, many homes are receiving competing bids. The good news is, the tips below can help you to place a winning bid so that you will not miss out on your dream home.
Tip #1: Consider An "As Is" Bid
Traditionally speaking, when a perspective home buyer makes an offer to purchase a home this offer will include what are known as contingencies. Basically what this means is that the validity of the offer is contingent upon certain criteria being met. For instance, many buyers choose to include a contingency clause that allows them to back out of the offer if they are unhappy with the results of a home inspection. When placing an "as is" bid, you will be waiving your right to this type of contingency and are essentially vowing to follow through with the offer regardless of what the inspection results may be. This gives the seller confidence that the home sale will not fall through and will make them more likely to accept your offer.
Tip #2: Make An All Cash Bid If Possible
While you may think than an all cash offer is out of your grasp, the fact is that more people are able to take advantage of this tip than actually realize it. This is because making an all cash offer does not necessarily need to mean that you have personally saved up enough cash to purchase your home outright. It simply means that you have been able to secure alternative financing options that allow you to offer a cash payment rather than needing to take out a traditional mortgage which requires a lender to place a lien on the property during the closing process. The most popular way that this is accomplished is by taking out a personal loan rather than applying for a mortgage. Since no lien is put on the property when choosing to go this route the closing process is much faster and easier. Consequently, sellers almost always give preference to individuals who are able to make a cash offer.
Tip #3: Consider Offering More Than The Listed Price
With many homes receiving competing offers right now, it is easy to get caught up in a bidding war if you offer below or at asking price. This approach is not likely to work in your favor. However, if you are able to make an offer that is even slightly above the listed asking price, this type of aggressive offer is sometimes enough to catch the current homeowner off guard and result in a quick acceptance of your offer before any competing bids are able to be made.
For more information contact realty home buyers in your area.
