Today’s housing market is markedly different than what we had just a year ago. Back then, people could make low-ball offers and actually have a good chance for winning. Now buying a property has become more expensive and complicated; there are reports of bidding wars breaking out all over the country, even going into slower selling seasons.
There’s more to winning a bidding war than crushing other investors with your bank account until the home seller caves to your offer. Whenever buying a property, whether it’s a home you’re going to live in or one that you’re acquiring as an investment, it’s best to do your research, set boundaries and be strategic. Armed with knowledge, you’re more likely to be the victor in your battle to buy a property, without paying more than you should.
How to Win a Bidding War
Here are seven tips to keep in mind to help you win a bidding war:
- Know the Neighborhood. Make sure that your expectations aren’t out of line with your capabilities. Some neighborhoods are more expensive, others have more or less popular types of housing, and they all have different amenities to offer nearby. There are many websites out there that can give you price comparisons for properties in each community. They can help you avoid neighborhoods that are out of your price range and discover the places with the right features nearby. Make use of them so you can narrow down the places where you’d like to buy a property.
- Involve the Right Players. Unless you’re professionally trained in the purchase and sale of homes, you should pick a representative with whom to work that is experienced, local and well known. The more respected the buyer agent or broker is within the community, the better …read more