The competition is fierce when making an offer and buying a property in today’s Philadelphia real estate market. But, unfortunately, when a bidding war begins, emotions can get the best of the most experienced investor. So it is crucial to consider the genuine possibility of a bidding war, preparing yourself in advance to avoid costly emotional bidding.
Ultimately, you must set a limit for your counteroffers if a bidding war should ensue and be willing to lose, walking away from the property once past your limit. Therefore, it is essential to keep in mind the seller’s point of view and make your offer stand out among the crowd of buyers. We will cover four tips to win a bidding war when buying a house in Philadelphia.
Make the First Move
The best way to win a bidding war when buying a house in Philadelphia is to avoid one altogether. Moving swiftly into action is vital. The early bird may very well get the deal in a seller’s market. When you make your offer in a seller’s market, you must be willing to make an attractive offer based on the comps, the property’s condition. It is not the time to play games, hoping for counteroffers. Most importantly, you should pre-determine what the home is worth to you. Sometimes a seller may try to create a bidding war to sell for more than current asking prices allow by setting a meager asking price. With your offer above market value from the start, making a bold presentation is vital in winning a bid in a hot market.
Prequalifying is not enough with properties in such high demand. Presenting your offer with a fully underwritten credit and income approval is an impressive way to win a bidding war when buying a house in Philadelphia. You will have the upper hand against any offer in which the bidder may be prequalified but failed to take the next step, showing how serious you are about the offer. While the downside is the time and paperwork involved in taking this extra step to have your mortgage credit report run, another advantage of this process is the ability to close much more quickly because the loan is easier to underwrite.
Contingencies and Convenience
In essence, if your offer is accepted, contingencies give you as the buyer a way out of the contract, given a stipulation is unmet within a given period. Being accommodating about the timelines for any contingencies, which should be few, can assist in making your offer appealing. Even better, waiving all contingencies means the seller doesn’t have to be concerned about your backing out of the deal. It pays to have a winning team of pros from every walk of the real estate industry at the ready, from inspectors to appraisers and contractors that can quickly advise you on any expenses you may face. Letting the seller know you are flexible about the closing date or willing to rent the home back to them for a few months can go far towards winning a bidding war when buying a house in Philadelphia.
Cash is King
An all-cash strategy will put you in front of the line when sellers weigh their options with their offers. Take the extra step to include proof of your funds to put the icing on the cake. If you do not have the total cash, put down the largest deposit possible to win a bidding war when buying a house in Philadelphia. Naturally, sellers are happy to avoid all of the hassles of helping buyers qualify for financing and the ability to control when closing happens instead of waiting on the hurdles of the loan process to move on with their lives. The time constraints involved in a booming market bring your teambuilding skills into play, calling in your inspector and the rest of the team for input on the property, allowing you to take quick action. Unless you have strong negotiating skills, and the ability to remain calm under pressure, it may be wise to work with an expert like the professionals at Philly Off-Market Deals, real estate agents who work with buyers and understand the Philadelphia market intimately. Knowing just how competitive the number should be to help you create a winning bid comes through a great deal of experience.
Why not let the experts at Philly Off-Market Deals help you hit the nail on the head with your first offer? Working with the experienced investment professionals at Philly Off-Market Deals provides you access to the most reliable experts in the real estate industry. In addition, working with Philly Off-Market Deals as your team means you will have the confidence to move with the speed it takes to make a winning bid when buying a house in Philadelphia. Call Philly Off-Market Deals at (215) 422-3288 or send us a message today!