Tips To Winning A Bidding War When Buying A Property

Finding your dream home and putting down an offer is a thrilling experience, however, when you reach this stage of the homebuying process, there is a chance that other buyers might also be interested in the same home and ready to put down an offer similar to yours, or even higher. In the event that this happens, you may have to be ready to make a different, more expensive offer to secure the home. If you are interested in learning more about strategies to help you win a bidding war in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage can help. Continue reading to learn more about getting an advantage over other buyers when purchasing a property.

Pay With Cash And Offer The Most Funding

Of course, the most definitive way to ensure that you get the home that you want is to outbid other interested parties by offering the highest amount. If you can come up with more money than other interested buyers, you will be likely to secure the home because a seller’s main objective is to get the highest price. Sellers also prefer a buyer to purchase the home with cash because it demonstrates that you are genuinely interested in completing the purchase and it doesn’t involve a third party in the home’s financing. It can be riskier for a seller if a mortgage lender is involved in the purchase because there could be potential issues between the lender and the buyer and the contract becoming finalized.

If Financing Is Needed, Get Loan Pre-Approval

It is more common for a buyer to not be able to pay the total cash amount for a home and it is more than likely that financing a home with a mortgage will be needed. In that case, sellers want to know that a potential buyer is committed to buying the home and fulfilling the contract. To improve your odds of winning a bidding war as a potential buyer, you can become pre-approved for a mortgage, which demonstrates that a lender is willing to give you a loan. In order to become pre-approved, you will need to provide documentation of income verification, credit history, and other assets.

Get Certain Consistencies Waived

Contingencies are certain specifications that need to be met in order to finalize the purchase of a property. If these contingencies are not met, a borrower can leave the deal without losing any money. If a buyer waives any contingencies, like a financial contingency or a home inspection, it illustrates that they are dedicated to finalizing the deal. If you are ready to purchase a property in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and would like to learn more about your home financing options, contact Foundation Mortgage today for a consultation.