Bidding wars are heating up across the country as buyer demand continues to offset the number of homes for sale. Buyer competition is even affecting towns that rarely see bidding wars, due to the lack of lower-priced inventory.
For buyers with school-aged children, there's an added urgency in wanting to find a place before the fall.
“Buyers were waiting and waiting for inventory to open up, and they’re looking at the school calendar and thinking they need to get settled before the school year starts,” Betsy Ceccio of Keller Williams in Montclair, N.Y., told The New York Times. “The clock is ticking.”
So in particularly hot markets, how can your buyers come out ahead in a bidding war? The New York Times recently offered some of the following tips from housing experts:
Get preapproved for a mortgage. A preapproval letter from a lender – note, not prequalified – can show that a buyer is a strong candidate in obtaining financing.
Have a strong start. What can you most afford? Bid accordingly. That said, “don’t go to a point where you think it’s going to be too much to handle,” says Caroline Baccellieri of McClellan Sotheby’s International Realty in Pelham, N.Y. Also, if buyers offer more than the asking price, make them aware that their mortgage lender may still appraise the home at a lower value. This could then leave them having to pay the difference.
Waive the mortgage contingency, but ... Sellers tend to prefer offers that are not contingent on the buyers’ ability to obtain financing. So in hot markets, an offer contingent on the mortgage could be viewed as a detriment. Yet, without this contingency, buyers can run a risk of losing their deposit if their financing ends up falling through. They’ll want to weigh this one carefully and consult a lawyer.
Don’t just bank on the letter. A heartfelt letter attached to your offer has gotten some buzz lately as a winning strategy. While a nice touch, “don’t expect them to distract the seller from the bottom line.”
Cash. And one of the best ways to win a bidding war: Offer cash. Sellers like all-cash offers because it provides more certainty the deal will go through and without delay. If an all-cash offer isn’t practical, have your buyer find other ways to provide the seller certainty that the settlement will go through.
Also, having an "ethically aggressive" realtor who has a lot of experience helps. If you are looking at buying a home in today's market, give me a call and let's get started with your home search today.
Sherry M. Cabrera, Realtor®
5700 Tennyson Parkway | Suite 170 | Plano, TX 75024
tel (214) 454-6969
Author:Deborah Boyd Phone: 940-368-1306 Dated: June 25th 2016 Views: 1,114 About Deborah: My family has lived in North Texas for generations so I personally know the residential areas of Fri...
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
General Inquiries: email@example.com
Office Number: 1 (800) 683-5651
Texas Real Estate Commission Consumer Protection Notice
4 TIPS FOR EFFECTIVELY MAKING AN OFFER4 TIPS FOR EFFECTIVELY MAKING AN
"Corey, just want to thank you for the great service you provided me on the recent sale of my home. I truly appreciate all the extra time and effort you put forth helping with items above and beyond the duty of a realtor. You are not only my realtor but a special friend too"