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. “The clock is ticking.”
So in particularly hot markets, how can your buyers come out ahead in a bidding war?
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. Call Mat Grella at Equity Prime Mortgage 480.221.1413 to get pre-approved for a loan.
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. 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.
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.
If you or someone you may know, is looking to buy or sell a home, give them my name (Mike Dokos) and phone number (480.600.3948) so that I can get them started on the right path towards buying and selling their home. I've been a Realtor for over 13 years and have a lot of negotiation experience behind me so I will get you the best deal possible.
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"I'd say he's doing great! I am a business partner of the team and I can say that he has been nothing but outstanding in every regard to mortgage lending. He has a true desire to serve his clients and serve them well. "