In a tough market, it pays to be prepared. Make sure you’re ready to pounce once you find your dream home with these five tips to help you place the winning bid.
1. Down Payment
There are plenty of low down payment mortgage options that can help you get into the home of your dreams, but saving up a larger down payment gives you leverage to offer more for your home in case you find yourself in a bidding war. Just remember to keep in mind how much home you can realistically afford when you’re considering offering more for a home.
2. Get Pre-Approved
Getting pre-approved for a mortgage is one of the first steps to buying a home.Not only will it give you a solid idea of what you can afford to pay for your home, it will reduce the seller’s risk when choosing your offer over someone else’s in a multi-offer situation.
3. Know What You Want
Time is a critical factor when placing an offer in a tight market. While you sleep on your decision to put in an offer, other buyers could be making their move. So, as soon as you’re sure you want the home, take action!
4. Minimize Contingencies
The fewer conditions you add to your offer, the more appealing it will be to the seller. If you love the house, but hate the carpet, consider a renovation loan instead of requesting the seller install new flooring. Pick and choose your contingencies carefully.
5. Be Flexible
Most buyers have a very specific time frame they’re hoping to move during – one that lines up neatly with the end of their current lease or sale of their current home. If you can create some flexibility on when you need to close to better accommodate the sellers, it could give you a serious advantage.