This market is definitely not a buyer’s market, as we do not have enough
inventory to meet the demand. But, with the lower prices and low interest rates
now is the perfect time to buy. The problem many buyers are facing is with such
a low inventory to choose from they often find themselves competing with a dozen
other buyers for the same property and ultimately losing the so called “bidding
war”. This bidding war has caused many potential buyers to become frustrated and
discouraged in their home search process. To win a bidding war you obviously
need to have your offer accepted, but how do you do that? Below you will find
some tips on how you can better your chances at winning that home of your
dreams.1) Approved Financing- Before you start looking for a home work with a lender to get approved for financing, not just preapproved. A prequalification letter is not necessarily an approval. Ask your lender to give you a copy of your Fannie Mae underwriting approval as proof of your approval. Sellers want to know they will not run into financing issues so having an upfront approval will help ease the fear of lending issues one might run into.
2) Know your price range- If you have received your financing approval you should know your price range and don’t go beyond that range.
3) Understand the current market- I cannot stress enough how important it is to know the market. Today the listing price is not necessarily the selling price. When there are multiple offers on a single home the winning bidder is often the one with the highest offer. To help you understand the current market conditions ask your realtor to prepare a Comparative Market Analysis (CMA). A CMA will tell you what similar homes are selling for. Knowing this will help you make a competitive offer.
4) Minimal Contingencies- Contingencies are certain conditions that must be satisfied in order for the sale to go through. A home purchasing contract may include contingencies such as the sale of another home. Do not eliminate important contingencies such as large repairs that may need to be made. The less contingencies you have the better chances you have at winning a bid.
5) Add a personal touch- Often sellers are emotionally attached to their homes. They want to sell their home to someone who will take care of it, who will appreciate it as much as they have over the years. As you walk through the home take note of anything that can give you clues as to who the owners are something that you might have in common. Did you go to the same university? DO you like the same sports teams? Then write them a letter introducing yourself, your family and why you love their home. If you found a common interest share that in the letter. As cheesy as it may sound, sellers like to put a face and a story behind all the papers.
Bidding on a home in today’s market is extremely stressful. With patience and determination you will win the bidding war on your dream home. Work with an agent who understands the stresses brought on by today’s market and who will work tirelessly to ensure that your stress is minimized.
Anna Rogers is a member of an award winning team at Exit Realty SCV, one of the areas fastest growing real estate firms in the Santa Clarita Valley. Working with both buyers and sellers in the Santa Clarita, San Fernando Valley’s and surrounding areas, Anna will work tirelessly to ensure all your real estate needs are met. She looks forward to talking with you and helping your home buying and selling be a smooth transaction.
Anna Rogers
818.688.1882
http://www.buyandsellscvhomes.com/
annarogersre@gmail.com
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