If you find a house you love in a hot housing market, you may not be the only one with your sights set on it. Sellers will pick the offer they like the best when multiple buyers are interested in their properties, so try these tips to give you a leg up in the home bidding process when you have competition for the house of your dreams.
Put Your Financial House in Order
Make sure your financial affairs are in order before you start looking for a property to call home. Know what you can afford and be prepared to make as large of a down payment as possible. Having greater cash reserves reduces the chances that your financing will fall through, making you more attractive to sellers.
Also check your credit reports for any inaccuracies to make sure your credit score hasn’t been negatively affected. Although this is just one factor lenders use in determining whether to approve you for a mortgage, it’s a very important one.
Improve Your Offer Terms
Increasing your offer obviously makes it more likely that you’ll win the bidding war, but it’s not the only way to make your offer more attractive. Paying in cash can make your offer appear more serious, but if that isn’t an option, you can also increase your credibility by getting pre-approved for a mortgage.
Keep the Process Moving
When a seller puts a home on the market, they generally want it to sell at their price as quickly as possible. Make yourself a more attractive buyer by doing everything in your power to help him accomplish that, such as offering a shorter closing time. Of course, this requires that you have your financial ducks in a row.