How to Win a Bidding War When Buying a Home
Posted by Hank Miller on
Learning how to win a bidding war when buying a home usually comes from losing; as others win you learn. There are fundamental techniques and steps to take that will make your offer shine when multiple offers are received. Working with an experienced buyer’s agent is key; one that can dissect data, honestly guide you, write an effective offer and respond rapidly during the process. Many strong offers are lost because buyer agents fail to respond in a timely manner. In situations where "highest and best" offers are called for, remember; highest is not always best. A cash offer with no appraisal contingency and a few days of due diligence can be more appealing than a 97% FHA offer.
Don’t Overpay
The very first step in winning is not overpaying; …
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common expression involving excrement and then “now what happens”? The buyer’s loan amount is based upon the lower number between the contract price and appraised value. Experienced agents usually understand how to limit real estate appraisal issues, but it sometimes happens. The argument “the market dictates value” may be true, but appraisers write reports for underwriters and there are strict protocols that they must follow.
What is the due diligence period? It's arguably the single most important part of a home sale. Of course everything matters but the due diligence period is essentially an “option period” for the buyer, the time where all of the critical research is to be completed. The buyer has virtually total control during this period. Emotions run especially high; buyers are presented with reports that often scare the hoohah out of them, sellers usually see inspection amendments as a money grab and their backs immediately rise.
Meth labs are scattered all across the country, including throughout metro Atlanta. Yet there is NO requirement to disclose that a home has…
Is it wise for buyers to waive the appraisal contingency? Appraisals continue to cause agita among many in the home buying process. Is the answer to eliminate it? Current offers reflect the “current” market (listings/pendings) while appraisals reflect the “past” market (solds). This is an inherent conflict especially in a transitional market. When inventory is tight and seller markets exist, the "cleanest" contracts get the most attention. Cash buyers can obviously waive the appraisal contingency completely. Buyers with mortgages must have an appraisal, but there are ways to ease a seller's mind even when an appraisal is required.
