6 steps to successfully bidding on the house of your dreams
1. How much can you afford?
Getting pre-approved for a mortgage is one of the first steps you need to complete when looking to purchase a home. By fully understanding what you can (or cannot) afford, you will be saving yourself time and more importantly disappointment if you find out you can’t afford what you had your heart set on. In our market, a pre-approval is required to accompany an offer.
Check out: What type of buyer are you?
2. Act quickly
If you see a house that you like, it is crucial to work with your agent to present a strong offer as soon as possible. Assuming the house is desirable and priced right, there will likely be other people competing against you. Review the comps with your agent and decide what offer you need to present to have a strong chance of being the winning bid.
3. Put forth a strong offer
By understanding the supply and demand in a particular neighborhood, you will be better equipped to put in a strong offer. This is why having an agent who is knowledgeable about the inventory and the local market conditions is essential. Not all houses are priced correctly to sell, but the ones that are tend to sell quickly.
Check out: What is a meeting of the minds?
Unless you present an offer of list price and there are no other offers, it is common that the sellers will counter your offer. The process of selling a house can be emotionally charged. Typically, this is one of the largest financial transaction that both parties are involved in during their lifetime. To understand this is important through the negotiation process. It is wise to put forth a strong offer with a reasonable counter-offer. Since emotions can be high, it is crucial to avoid unnecessary conflict during the process.
5. Personal Touch
People like to do business with people that they like. Therefore, you want the sellers to feel an emotional connection to you the buyer. It is never a bad idea to send a letter that describes why you love the house and why this house seems so perfect for you and your family. Try to be as open and honest as possible. By making that connection, there is a much better chance the seller will sell their house to you.
6. Be reasonable with inspections
Sellers have choices. An inspection is designed to learn more about the house and see if there are issues that may not be visible by the untrained eye. Inspections are not an opportunity for a buyer to give a seller a laundry list of wish items. If a furnace is old but is still in working order, it is not reasonable to expect the seller to install a new furnace. If a buyer is too demanding on fixes, it could jeopardize the deal.
Check out: What to Inspect When You’re Inspecting
For more information, or if you need a referral for a knowledgeable Realtor© in your area, contact:
Coldwell Banker Residential Brokerage
211 South Street
Morristown, NJ 07960
(O) 973-267-8990 x153