Ask any experienced homeowner in Southern California and you'll learn that buying in a 'hot' real estate market can be challenging. A high supply of buyers competing for a low stock of available homes is a combination that can lead to bidding wars, price inflation and other headaches. The good news: with some careful preparation and the right mindset, a bidding war is one that you can win. Read on to learn how you can beat out other bidders by making an irresistible offer.
Start With Strong Representation
Answer this question honestly: Are you an experienced negotiator? Unless you have made a career out of buying and selling homes, you may find that your skills my not be up for the challenge. The middle of a bidding war is a poor time to have this realization, so it's best to start the process with strong professional representation. Invest the time in securing the services of an experienced real estate agent who has a history of successful home purchases and happy clients.
Get Pre-Approved For Your Mortgage Financing
Now that you have a good real estate agent on your side, you'll want to move to the next step: meeting with a mortgage lender. Your goal is to secure pre-approval for your mortgage financing, which will show the seller that you're both prepared and serious about buying their home. Gather up recent financial information like pay stubs, tax returns and bank statements before meeting with a mortgage professional. Being prepared will make the approval process a bit easier. Don't hesitate to ask the Real Estate Agent that is representing you for a referral in this area. If you are buying in a hot market like Southern California, then it is important to get linked up with someone that has a track record of successfully providing mortgage financing in that specific market. If you are buying a home in Orange County, then don't think twice about asking them whether or not they have been able to successfully close on transactions in your specific area.
Have The Appraisal And Inspection Team Ready
Once you have found your dream home, you will need to move quickly to have it appraised and inspected. As with your other professionals, it's best to pre-book these companies ahead of time so they're ready to go. Ask your friends and family for referrals now so you can chat with potential appraisers and inspectors.
Be Serious About A Quick Closing Process
Finally, if it isn't already obvious to them, make it clear to the seller that you're interested in closing quickly. Every home seller is interested in a fast, efficient close so they can move on. Pushing the pace a bit will demonstrate that you're not going to reverse course.