Tips for those in a home bidding war

| Apr 19, 2018 | residential real estate

In the current housing market, Florida residents and others looking to buy a home should be ready for a bidding war on any property that they are interested in. A combination of low inventory and an influx of new buyers has resulted in higher home prices. To improve the odds of winning a bidding war, it can be a good idea to make a cash offer.

Doing so reduces the odds that a seller rejects an offer out of fear that it will fall through. It also makes a person more competitive against investors who are likely to make a cash offer. Alternatively, it may be possible to win a bidding war by offering to buy the home even if financing falls through. In such a scenario, an individual would be obligated to buy the home regardless of whether he or she qualifies for a mortgage.

Buying a home can be an emotional endeavor as much as it is a financial one. Therefore, it is important to know when to walk away from a home instead of stretching the budget too far. In some cases, writing a letter to the seller could be enough to win a bidding war as opposed to offering to pay more for the home. The letter can mention that the home will be used and cared for just like the current owner did.

Home buyers might not realize that real estate agreements may be customized to fit their needs. Therefore, it may not always be necessary to offer the most money to buy the home. Instead, it might be possible to structure the deal in a manner that is attractive to a seller, such as offering to pay cash. An attorney may assist in crafting an offer sheet for a buyer.