Before entering the real estate market, it is always best to be well prepared. The same thing goes for when entering a bidding war. The most successful clients in a bidding war are the ones who are prepared for battle as they say.
Here are some tips that can lead you to success.
The first step is to speak with your mortgage specialist to find out how much you can afford. The written pre-approval is crucial in your success to secure your dream home. Many people may feel that the pre-approval online calculators suffice but they do not.
Therefore, make sure you have the written pre-approval in hand when presenting your offer.
Let’s say you found your dream home and the offer date is a few days ahead. You can request a home inspection prior to the offer date. This way you are protecting yourself when you put in the offer. If there are any issues in the home, it will be disclosed in the home inspection report and it can assist you during the bidding war.
When presenting an offer, it is best to bring the deposit ready on hand. The deposit should be at least 5% of the purchase price. By having the deposit ready, it shows the seller that you are serious and have the funds to purchase it.
Another piece of advice I would give, would be to stay on budget. Bidding wars can be aggressive and quick.
However, keep in mind that there are many other homes out there and be prepared to walk away especially if it’s going over budget.
With an experienced realtor by your side, they can guide you through the process. Keeping your best interests front and centre.
If you are looking to purchase or sell a home and have questions around bidding wars, don’t hesitate to contact me as I would be happy to help.