These two little words can break your heart when you’ve just found a home you want to buy. Home-buying can be an emotional process, so it’s easy to be reactive and find yourself in a bidding war. So, how to survive multiple offers?
Houston home buyers are coming against this issue very often and, as we go into peak season for the real estate industry, it’s important to know how to navigate a multiple offers scenario. Otherwise, it’s easy to make costly mistakes during this critical time in your home purchase.
First, it may seem counter-intuitive, but a tough seller’s market often requires bidding over asking price. This can actually save you money in the long run, if home prices continue to rise throughout a lengthy home search.
Next, leave room for error by starting your home search below your budget. This leaves you room to bid over asking. If you start looking at homes listed at the top of your price range, you have little flexibility and risk paying more than you can afford.
You can also influence sellers toward your bid by proving you can close the sale. Sellers don’t want to risk a deal falling through, as it costs them money and valuable time. Prove you can close the sale when the time comes by offering approval letters, choosing an experienced agent, or a strong credit score.
Lastly, you can do yourself a favor by giving yourself plenty of time to consider your options. If you’re bound by a relocation date or other deadline, move into a rental instead setting a time for your home purchase. Time constraints can create pressure that lead to costly decisions. Finding the right home takes time, especially in a difficult market.