15 May How to Avoid Being Outbid on a Home
Follow These Tips to Avoid Missing Out on Your Dream House
Deciding to purchase a home is a detailed and intricate process that inevitably will include bidding. Bidding for a house can be a challenge, especially for first time homebuyers. We’ve compiled our best advice on how to avoid being outbid on your dream home.
Do Not Make a Lowball Offer
Ask your realtor to complete a comparative market analysis before you make a bid. This will help you decide the price range for your bid. While there is usually a little bit of wiggle room for negotiation, there isn’t much. If you bid too low, you are likely to lose the house. If you bid too high, you could very well pay too much for your new home. Work closely with your Real T Team realtor to decide if you can place an offer below asking price or if you need to place an offer at or above asking price. Additionally, you should make sure that you’re comfortable with the price of your offer. If you feel that the price you’re offering is too low or is out of your budget, don’t go through with that offer.
Set Yourself Apart From Other Potential Buyers
Price isn’t the only factor that plays into whether or nor you’ll be outbid. Sellers typically take factors like financing and appraisal contingencies, inspection periods and closing dates into consideration as well.
Some of the best ways to set yourself apart as a buyer include:
- Being pre-approved for a mortgage – This shows the seller that you are financially reliable and that the deal will not fall through.
- Having limited contingencies – Having limited contingencies will ensure sellers that the deal won’t be too complicated. However, be sure that you don’t make the contingencies of your offer so limited that you forego due diligence.
- Being flexible about your closing date – Moving out of a house is a stressful endeavor. Giving the seller more time to move out might just convince them to choose your offer over an offer for more money.
- Writing a detailed and personal offer letter – Selling a home is an emotional experience. Appeal to your seller’s emotions with a detailed and personalized offer letter. This will also help the seller see you in a more favorable light.
Be Sure to Ask if There Are Other Bids
Sellers are not required to disclose whether or not there are other bidders, although it may actually work in their interest by starting a bidding war. Have your realtor get this information from the seller, so you are aware if you’re the only potential buyer or if there are many. Knowing if there are other bidders or not, as well as how much they may be bidding, can help you and your realtor decide just how much you want to offer.
Hire a Realtor With the Scott Brown Real T Team
Our realtors know the intimate details of North Texas real estate markets, which means we can help you craft precise and effective bids. The realtors with the Real T Team are on your side and work hard so you have a better chance of landing your dream home.
Being outbid on a home is always a possibility. However, when you work with the Real T Team and follow these guidelines, you are much more likely to have the offer on your dream home accepted by the seller.