Like many other games, home bidding is a game of strategy. The difference is that when you play a game like chess, the other player sits across from you. When you’re looking to bid on a house, you might be playing against more than just the person on the other side of the table. You also have the other people looking to bid on the same home. So how do you win a home bidding war?
You must be on top of the game if you’re wondering how to win in home bidding in Northern VA. Although interest rates have dampened the market somewhat, Northern VA remains a seller’s market. You will need to prepare for a bidding war to secure the home of your dreams.
5 Ways Buyers Win Home Bidding War in Northern VA
Submit a Pre-Approval With Your Offer
To be the winning offer, you must show the seller you’re serious about purchasing the home. One way to do that is to attach a pre-approval letter from your lender, showing the seller that you’re already pre-approved to purchase their home.
Lenders typically issue a pre-approval letter in as little as 24 hours, so there’s no need to delay!
Have The Cash to Close Escrow
If the seller accepts your bid, you’ll need a deposit and a down payment. This amount can vary, but deposits typically range between 1% and 3% of the sale price. The more cash you have upfront, the better your offer looks to the seller.
Close As Quickly As Possible
When you put in an offer on the house, make sure you’re ready to close quickly. Sellers want to know when they’ll need to move. A guaranteed closing date will give you an advantage over other buyers who haven’t secured financing.
Work With An Experienced Real Estate Agent
It is possible to win a bidding war without a real estate agent. However, your chances of winning are much lower without their advice. Besides increasing your chances of winning, they will also help you determine your dream home’s fair market value.
Be Flexible With Contingencies
Contingencies are conditions to which buyers and sellers must agree before finalizing a sale. And while they’re perfectly reasonable requests, they don’t do much to improve your chances of getting your offer accepted. If there’s competition for the listing, consider reducing or eliminating some of your contingencies.
Contingencies of sale are typically inspection, loan, and appraisal, to name a few. Releasing contingencies early or eliminating a contingency of sale does not mean you don’t do home inspections. It just means you can’t cancel the sale due to the results of a home inspection without losing your deposit.
Following the above four tips will increase your chances of beating your competition and winning the keys to your dream home. Sometimes it comes down to price, but sellers are more likely to engage with buyers who seem reliable and ready to close the deal quickly.
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