So you’ve found the perfect home for sale in Albuquerque. But the problem is you’re not the only one to feel the same about that home. With low inventory and high demand, this is a likely scenario, and bidding wars are common.
A bidding war takes place when a seller receives multiple offers within a short window of time.
This is a great thing for sellers, as it means they stand to make more from the deal. But for buyers, it’s getting a bit tricky to stay on top of the game and get the home the want and for a price they want.
How can you win a bidding war if it happens? Here are 5 ways.
Get Pre-Approved by Your Lender
If you are planning to buy a house in a hot market, get pre-approved by your lender first. A pre-approval letter informs the seller and the agent that you’re going to be able to afford the house, thus reducing the risk of financing falling through.
A pre-approval letter means that you are very serious and prepared to buy. Without pre-approval, if there’s a lot of competition where you’re looking for a house, you could be passed over altogether by the seller.
Go All-Cash If You Can
Not everyone can do this, but if you can offer up an all-cash offer, you’re likely to be the one they choose. The seller won’t have to worry about you being able to finance the property.
Cash sales also save time because there is no underwriting to go through.
Write a Letter
People often feel an emotional attachment to their homes they’re selling. They want to sell their homes to someone who will treasure them as much as they did.
You cannot lose by writing to the seller. It costs you nothing, and you might just win big.
Tell them about yourself and your family, and share a few details of why you found that house to be captivating.
Skip the Contingencies
Contingencies are conditions that have to be met before a sale can go through.
If you drop contingencies you’re saying that even if something goes wrong, such as with the appraisal, you cover the costs.
This isn’t always ideal because you may have to put less down due to the fact that contingencies are allowed, but if you’re set on a specific house, it might make you more competitive against buyers who have contingencies.
Offer a Big Deposit
One way to show a seller you’re serious is to have a large deposit ready. A seller won’t just want to make the most money for their house; they may also want a fast, easy sale.
If you can make things easier and smoother, you’ll gain a competitive edge in a bidding war.
In addition to showing that you are serious, a bigger deposit will allow you to borrow less money from the bank. This is very helpful if a bidding war is raising the price of a home above what it may appraise for.
Make sure to join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.
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