4 Simple Steps to Winning a Real Estate Bid War

Today's real estate climate is a buyer's market and has been for some time, so with so many bids out there how can you make sure that your bid will have a fighting chance?

The first tip that you can use to make sure your real estate bid has a chance is to make sure you are the first to place an offer. If you are not already working with a buyer's agent, get one. This Realtor can make sure you have immediate information on any property that hits the market, usually within minutes of it being listed.

Keep in mind that in this current economy, many sellers are in a situation that requires them to move quickly on their properties. Being the first to raise your hand, may just be the edge that you need to be able to get the deal done.

To accompany being first, you should put a very tight limit on your offer. In the real estate market it is common to give 48 to 72 hours for the buyer to respond to an offer. If you feel that the property will be in demand, why not limit the offer to just an hour or two? This pushes the offer to the sellers without delay and makes it difficult for the listing agent to notify other potential buyers of an offer.

The second piece of advice would be that of being pre-qualified. Buying and selling real estate, and getting it for the price you want, is all about positioning. By having a letter from your lender, stating that you are approved for an amount that is in line with the purchase price, will put you in a stronger position.

Keeping your demands and contingencies to a minimum is another good piece of advice. As stated previously, there are a significant number of bothered sellers in the market. By not demanding partial closing costs, or various allowances, you make your offer more attractive to prospective buyers. Make sure you get your inspection contingencies, but be hesitant when requesting other concessions.

Conversely, you may want to offer something that will help a seller that is in this type of situation. For the owner that may be having trouble paying the mortgage, a quick closing date may be helpful. Be open to helping the troubled seller, it may just be the winning edge.

Finally, be the highest bidder. This is not to say that you should not do your market research, but if the listing agent has done his job properly, then the home should be close to market value. By first doing your due diligence, and consulting with your buyer's agent, you should be able to place a bid that is in line with what a seller would be willing to accept.

Keep in mind that most listing agents are not pricing homes that are 5 to 10 thousand dollars above market value and you should not have the attitude that just because the property may need to be sold that the seller is going to be willing to accept such a low offer.



Source by John Bruin

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