If you're house hunting, then you need to know how to boost your chances of winning that perfect home. Follow these home-buying tips to stop another buyer from running away with your dream home.
- Be Financially Ready
Don't submit any purchase offers until you have been pre-approved for a home loan. This paperwork makes you the more appealing buyer — especially if you're bidding against someone who has not yet contacted their bank.
- Offer More Than the Asking Price
If you are serious about buying a specific home, offer more than the asking price. This will almost certainly eliminate the risk of being outbid because most buyers assume they should negotiate. Of course, before doing this, make sure the home is worth the amount of money you are offering and your finances can handle that amount.
- Drop the Contingencies
If you are confident in the condition of the house or are willing to take on any potential repairs, make an offer without contingencies. This will be more appealing to a buyer. While you may still need to have the home inspected and appraised by your mortgage lender, avoiding other contingencies will make your offer more appealing.
- Have an Escalation Clause
An escalation clause placed with an offer tells the homeowner that you are willing to automatically increase your bid for the home (up to your top offer) if a larger offer is submitted. The escalation clause will outline the increments you are willing to increase your bid by and the top amount you are willing to spend. If no other offers come in, your original offer stands. The only way you could be outbid in this situation is if someone offers more than you are willing to pay for the house.
- Know What's Happening in Your Market
One more way to avoid being outbid on your dream home is to stay informed about what is currently happening in your market. You can do this by staying on top of the newest listings to hit your MLS, working closely with a real estate agent who has a reputation for keeping their clients up to date with the market and locating potential homes for sale before they are listed.
When you're searching for a home, understand the housing market is competitive. You can increase your chances of winning your dream home with the help of an experienced real estate agent who will help you place an attractive purchase offer using these home-buying tips.