It may seem easy, but buying a house is not really a walk in the park. In fact, it can be very competitive, especially in a market where the house inventory is limited. When you find a property you like, it can be extremely stressful when you learn that others want it, too. If you truly want the house, then you have to be prepared for a bidding war.
Engaging in a bidding war is not something a lot of people are comfortable with. It is a particularly challenging task for those who are doing it for the first time. If you are in this situation, below are some tips on how to win a bidding war and get your dream house:
Hire a Real Estate Agent
Working with a buying agent gives you an advantage. Real estate agents are savvy negotiators who possess the skills and experience needed to win a bidding war. They understand different sellers – what they want, how to convince them, etc. They know what counteroffers to make and when to make them. Undoubtedly, hiring a reliable realtor is highly recommended, especially in a highly competitive housing market.
Sellers want nothing more than to sell their property immediately, with little to no hassle involved. For this reason, you can have an edge over other buyers if you come prepared. This means having the necessary documents ready like your formal approval in principle. A report stated that having an approval in principle can increase your chances of winning a bidding war by 58%.
It is also equally important that you hire the necessary people like a surveyor and a solicitor before making an offer. Doing this ahead of time can prevent delays in the buying process. Keep in mind, sellers do not want things to drag on. If you take too long completing the needed tasks like surveying the property, your dream house may end up on another buyer’s lap!
Offer to Pay in Cash
Getting paid in cash is every seller’s dream. In fact, a study revealed that paying in cash can double a home buyer’s chances of winning a bidding war. It is not difficult to understand why cash payment is appealing for property sellers. For one, a cash payment means not worrying about the loan not going through or waiting longer until the mortgage gets processed.
So, if you can, offer to pay in cash. On top of increasing your chances of getting the house, this move may even lead to a discount. After all, it’s not unusual for sellers to lower their asking price for buyers who are willing to pay in cash.
Connect with the Seller
Sellers are people, too. You can expect them to be emotionally invested in their house. Hence, apart from wanting to sell their property ASAP, they would want buyers who would take care of and appreciate the house.
So, talk to or write the seller. Talk about what you like about the house and what it means to you and your family to own it. Adding a personal touch to this extremely competitive endeavour may just give you the edge you need to outbid your closest rival.
Going through a bidding war to get the house you want can be emotionally taxing. To succeed, you need to be patient and strategic. You also have to know your financial limits. Keep in mind, no matter how much you want the house, you can’t keep on bidding if you can no longer afford what you’re offering. Don’t overstretch your budget. Know when to walk away and start house hunting again.
Are you buying a house in Ireland? Our real estate agents can help you win a bidding war and own your dream house. Call us at 01 495 9020 today!