Hot real estate markets bring out the
worst in everyone. Sellers could become
greedy and demanding and buyerscould become
desperate and frustrated. A real estate
agent could get caught in the middle as
they try to negotiate purchase contracts
that are acceptable to both sides of the
transaction.
Hot markets mean multiple offers may be
received for just about every for-sale
home. These bidding wars are great for
sellers, but not such a great winning
for buyers. How can you buy the home of
your dreams when several other people
are also bidding on it?
The bottom line
most sellers is the offer you would
make. They're naturally looking to sell
their home for the highest possible
price. If you want to win a bidding
war, offering the highest price, something
that's slightly above the asking amount
would be a sure way to get seller's
attention. Most sellers who receive
multiple offers only seriously consider
those who are offering top prices.
Of course, price is only part of
the equation when it comes to the seller's
net proceeds from the sale. An offer
with a slightly lower price can triumph
if the buyer agrees to incur more of
the transaction costs, like the penalty
on discharging the seller's mortgage.
Also, you would want to offer to
make a large money deposit and as large
a down payment as you can. Putting more
money on the table up-front shows the
seller you're serious about the transaction
and willing to put your money behind
your intentions.
Another good idea would be to attach
a copy of your mortgage pre-approval
letter to your purchase offer. A preapproval
is very helpful, but a full approval,
subject only to an appraisal of the
property, is even better because pre-approval
does not always result in full approval.
Sellers favor buyers who demonstrate
that they're financially able to close
the transaction. Agents advise getting
your pre-approval letter from a local
mortgage broker or lender who has a
good reputation among the local agents.
