Top 10 Bidding War Basics For Home Buyers

Submitted by Jasmina on Wed, 2006-10-18 23:37. teaches you how to prepare for a multiple bid situation:

  1. Get pre-approved for a mortgage so you know the maximal financing available to you.
  2. You do need to be aware of Comparative Market Analysis. In other words, do research to learn what the fair market value for any house you’re interested in is considered to be, as well as the fair market value of similar houses that neighbour them.
  3. Don’t add unusual requests, terms or conditions to your bid, like, for example, buying someone’s home on the basis that you’ll first sell yours.
  4. Set aside a fund for pre-buy home inspections.
  5. Make sure you’re not being taken in by the smoke and mirrors of objects that are not part of the home’s innate architectural charm.
  6. Bid an odd & slightly higher number to make your bid stand out from the rest.
  7. Try to go back to see the house that seemed so magical to you on first viewing more than once.
  8. Try to figure out the vendor’s “trigger”—what it is that would make them sell. If you know that the homeowner has a certain closing date in mind which differs slightly from yours, offer to meet their ideal terms.
  9. Bidding wars are a lot like gambling—the stakes are high and a lot of luck is involved.
  10. In the end, don’t get caught up in the excitement of bidding. There’s an age-old maxim: “buy the most expensive house you can afford.”