With available inventory in the area on the decline, you could find yourself in a bidding war during your home-buying journey. Demand is high despite the low supply, and we see Hampton Roads drifting further into a seller’s market. Sellers have multiple offers on their homes within their grasp, giving them the upper hand in what they will ultimately accept.
Going into the process, you might have more competition than you expected. Try these strategies to win the home you have your eye on.
1. Lean on Your Agent
Your agent has a wealth of knowledge, not only of the overall real estate process, but strategies for a bidding war. They are skilled negotiators who can help you make the best decisions. Don’t get caught up in the sport of competition with your eyes set on winning. Your agent will help keep you grounded with what makes the most sense in the transaction.
2. Get Pre-Approved
Being pre-approved puts you in a great position among your competition. It shows that you have already been qualified for a mortgage. You’ll have proof that you’re a serious buyer. Your pre-approval eases the fears of sellers who might be leery of financing falling through.
3. Increase Your Offer or Your Down Payment
Hopefully, you’ve properly prepared your finances before entering into the buying process and afforded yourself a little wiggle room if the need to make your offer more enticing comes up. If your budget allows, lean on your agent to see what you should counteroffer. If you’re unable to put more into a counteroffer, see if you can put more into a down payment. Either way, the more money you put in, the more serious you appear to the seller.
4. Cover a Percentage of the Closing Costs
Sellers will have to cover closing costs and commission to their real estate agent. Offer to cover a portion of these costs or some of the closing fees of the transaction, which can include title fees, recording fees, and appraisal fees. You often see this as a perk a seller will throw out to attract more buyers. As a buyer, this will make you look like a more attractive buyer compared to your competition.
5. Be Flexible
Does the home need repairs that could push your move-in date back? If you’re not in a hurry to move, showing a little flexibility with something like this can go a long way. If your competition has a hard move-in date, you could easily knock them out of the running by being accommodating. It’s also a win-win for you. If that home needs a new roof, why not wait on it and have the peace of mind that you will have a home with a brand new roof on move-in day.
6. Remember that for the Seller, This is Personal
Homes hold sentimental value to people, and most people want to be sure that it’s going to a person who will love it as much as they do. Be courteous, kind, and respectful to show how much you value the property. The seller may choose you simply because they like you.
Embrace the bidding war. Don’t fear it. With these strategies, you will be a step closer to becoming a homeowner. Connect with one of our 7,000 agents today to help you take advantage of the market. To find out what you can afford, check out our mortgage calculator to help estimate your monthly payments. For local listings you can trust, start with REIN.com.
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