Bidding War Basics for Buyers

When you've found that perfect house you'd like to call home, the last thing you want is to have to compete with other potential buyers.  Even in this market, bidding wars are sometimes a reality.  Here are some tips to help you prepare before entering a multiple bid situation.

  1. Loan Logic- get pre-approved for a mortgage so you know the maximum amount of financing available to you.  A thumbs-up for them bank, along with agreeing to put down the biggest deposit or down payment you can affort, can aslo help establish to sellers that you are serious about their property.
  2. Do your Homework- research to learn what the fair market value for any house you're interested in is considered to be.  Knowing the current market value of a house may also help you determine what you think other bidders might offer, to in turn establish the bid you want to make.
  3. Don't add unusual requests, terms or conditions to your bid. 
  4. Set aside a fund for pre-buy home inspections.  This is often money well spent. 
  5. Try and go back to see that house- more than a couple times if possible.  One reason is that what strikes you as a great first impression may make a poorer second or third impression.  Another reason is that more than a few sentimental homeowners have sold their house to a young family that somehow reminded them of themselves when they were starting out. 
  6. Bidding wars are a lot like gambling- the stakes are high and a lot of skill is involved negotiating them successfully.  Rather than trying to figure out how much you can afford to bid without breaking the bank, try to strategically figure out the highest competing bid you're trying to beat. 
  7. In the end, don't get caught up in the excitement of bidding.  Remember set a maximum value to the home you are bidding on and stick to it!

So, if you find yourself in a situation such as a mulitple offer situation, be prepared with credit pre-approval, financial strategies, heightened market value awareness, and of course, a great realtor.   Gary Chambers and Kim Suntjens are eager to help you find your own home sweet home and will give you their honest, professional advice along the way.  Call The Chambers Real Estate Team today!

Gary Chambers

Gary Chambers

Associate
CENTURY 21 PowerRealty.ca
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