Authored by Jessica Hansmann
1. Be Prepared: Pre-approval with a reputable lender is a must
The most important thing is to have a pre-approval by a reputable lender and have complete understanding of the new loan terms & mortgage payment. The lender can also tell you how much you can overbid on a home while still meeting their guidelines. You need the confidence in the lending parameters to make an informed decision. The decision most likely will need to be made very quickly.
2. Hire a Professional: Find a Realtor that will work hard for you
You will need to work closely with your realtor on setting up an accurate home search that meets most of your primary needs. As soon as you see a home that meets your criteria reach out to your realtor to set up a showing right away. The sooner you can see it and get your offer submitted, the better chance you have to get the home.
A Realtor will help guide you in making the best offer to win a bidding war. You can rely on their expertise to tell you what the home is worth, how many offers they currently have, what the Seller requires in the offer and strategies to make the offer the most competitive.
3. Know your Limits: Be informed to make a solid decision
You most likely will need to offer more than the listing price if there are other offers. It can seem like you are in a rush to make a decision and you feel you want to win; but is it worth it? If the answer is yes, then you can feel comfortable with your decision. There are waivers, escalations and many other strategies your realtor might suggest to be more competitive depending on your unique situation. The more you can discuss your different options ahead of time, the better poised you will be to take immediate action when you find the right property.
4. Stay Calm: You will find the right home
It can be discouraging if your first offer doesn’t get accepted but there will be more homes that fit your criteria. In competitive markets like this, you might have to make a few offers to get one accepted. The PLUS side…the more homes you look at, the more you will know exactly what you want, and don’t want.
5. Always Keep the Goal in Mind: This is for a long-term investment
Whether this home will be your 1st home, forever home, family home, investment property, 2nd home or a down-size it all leads to the greater long term goal of real estate equity, control of your living situation, stability & building of transferable wealth.
