Making a Bid for a Home
Although putting down an offer on your ideal home can be an exciting experience, when you are at this stage of the home buying process there is a possibility that another buyer may also be interested in the home and ready to put down a similar, or even higher offer. If this were to occur, depending on how much you want the home, you would probably have to change your offer to ensure you secure the home. The loan specialists at Foundation Mortgage can help you learn more about how to win a bidding war if you are looking to buy a home in Knoxville, Maryville, Lenoir City, Oak Ridge, and Gatlinburg, Tennessee. Contact our office today to learn some common bidding war strategies.
Pay With Cash and Try to Offer the Highest Price
The best way to win a bidding war is, of course, to outbid the other involved parties interested in buying the home and offer the highest price. You will be more likely to secure the home if you are able to come up with more money than other buyers because the goal of the seller is to get the highest possible price. Sellers prefer the buyer to purchase the home with cash if they have the ability to afford it because it eliminates a third party being involved in the financing of the transaction and demonstrates that you are serious about completing the sale. It tends to be riskier for the seller if there is a mortgage lender involved because of potential issues with the finalization of the contract and any issues between buyer and lender.
Get Loan Pre-Approval and Waive Contingencies
Usually, a home buyer will not have enough total cash to buy a home, and will therefore need to obtain a mortgage to finance the purchase. Sellers like to see that a buyer is seriously committed to buying a home, and you can increase your chances of winning a bidding war by getting pre-approved for a mortgage. To get loan pre-approval, you will need to provide paperwork that verifies your income assets, credit, etc. and this demonstrates that a lender is willing to give you funding for a home.
Contingencies are specifications that need to be met in order to finalize a real estate transaction. The borrower is able to leave the deal without losing money if certain contingencies are not met. If a borrower waives any contingencies, such as a financial or inspection contingency, this demonstrates to the seller that you are committed to finishing the deal.
Get Help Winning a Bidding War
If you are ready to commit to buying your dream home, and need help finalizing the deal and winning a bidding war in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage. We will help you secure your dream home.