Realtors Blog Posted A Great Artice About Bidding Wars

Realtors Blog Posted A Great Artice About Bidding Wars

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In a bidding war, the winning buyer is well armed NEW YORK – June 27, 2016 – Bidding wars are heating up across the country as buyer demand continues to offset the number of homes for sale. Buyer competition is even affecting towns that rarely see bidding wars thanks to a lack of lower-priced inventory.For buyers with school-age children, there's an added urgency in wanting to find a place before the fall."Buyers were waiting and waiting for inventory to open up, and they're looking at the school calendar and thinking they need to get settled before the school year starts," Betsy Ceccio of Keller Williams in Montclair, N.Y., told The New York Times. "The clock is ticking."In particularly hot markets, how can buyers come out ahead in a bidding war?Get preapproved for a mortgage. A preapproval letter from a lender –not prequalified but preapproved – can show that a buyer is a strong candidate in obtaining financing.Start strong. What can you most afford? Bid accordingly, but "don't go to a point where you think it's going to be too much to handle," says Caroline Baccellieri of McClellan Sotheby's International Realty in Pelham, N.Y. Also, if buyers offer more than the asking price, explain that a mortgage lender may still appraise the home at a lower value. If so, the buyer would have to pay the difference.Waive the mortgage contingency. Sellers usually prefer offers that aren't contingent on the buyers' ability to obtain financing, and in hot markets, an offer contingent on obtaining a mortgage could be viewed as a detriment. Without this contingency, however, buyers run the risk of losing their deposit if their financing falls through. They should weigh this one carefully and consult a lawyer.Don't bank on a letter. A heartfelt letter attached to your offer has gotten buzz lately as a winning strategy. While a friendly letter to the seller explaining how much the house means to the buyer is a nice touch, "don't expect (a letter) to distract the seller from the bottom line."Cash. One of the best ways to win a bidding war? Offer cash. Sellers like all-cash offers because it provides more certainty the deal will go through and without delay. If an all-cash offer isn't practical, buyers should to try find other ways to give the seller some certainty that the settlement will go through.Source: "Bidding Wars in the Suburbs," The New York Times (June 17, 2016) and "Checklist for Winning a Bidding War," The New York Times (June 17, 2016)© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688

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Phone: 561-951-3759
Dated: June 28th 2016
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