Real estate bidding wars have been on the rise for the past few months in Brentwood, Tenn., and in the surrouding Middle Tennessee area. With a high demand for homes and a low supply to choose from, multiple offers are being made as soon as homes go on the market. Although this might sound intimidating, your Realtor can be a huge advocate for you in this process, so you are not alone! Here are some things to consider as you make an offer on the house you love.
1. Know what homes are going for in the area. You don't want to be so anxious to win the bid that you significantly overpay for a home, even if it is your dream home. You'll have to know when to walk away so you're not stuck with a home that goes down in value if and when the market changes again.
2. Make sure you and your agent know where you stand. If you absolutely cannot go over your initial budget, then you do not need to push those boundaries. If the sellers think for one second that your financing might fall through, they will choose another offer, even if it is lower.
3. Use your agent's bidding skills to fight for you in this type of war, but make sure he is kind and courteous since he or she is representing you and your family. You don't want to lose your bid simply because the sellers don't want to deal with a bully during the negotiations.
4. Be quick and clear when you write an offer. If the sellers have several offers to consider, then you don't have the luxury of waiting several days to decide what you want to do.
5. Have your paperwork in order beforehand. Make sure your loan has been approved. Be ready to have a quick inspection. Anything that delays the process could make the sellers back out. Bankrate.com says, "While offering the most money might seem like the best way to win a bidding war, sellers don't always choose the highest offer. Instead, sellers often prefer offers that are most likely to go through and that meet their conditions."
6. Offer as few contingencies as possible. You might be up against buyers who are offering cash or who are buying without a contingency on the sale of their home. BUT, be smart. If you can't handle two mortgages for any length of time or if you wouldn't dare buy a home without an inspection, then opt to protect yourself more fully.
7. Make your offer more personal. Don't be afraid to include why the house would be the best fit for your family's needs. You don't want to have any regrets by not putting your best foot forward. Knowing that you made your best offer should give you comfort. If it's meant to be, it will be.
You don't have to be afraid to go after the house you love, but be wise in the process and allow your Realtor to fight with you!