Worried about bidding wars? Here’s how to outsmart your competitors By Yvonne McFadden
The competitive nature of the housing market in Arizona is the buyer’s biggest nightmare. Right now, finding the ‘perfect home’ is almost an impossible dream. We are seeing homes stay on the market for not more than 10 days, and that’s a stretch. Bidding wars between desperate buyers and hungry investors in Arizona is just crazy, and that is an understatement. Ultimately, it is up to the seller to decide which offer is the best and who’ll close the deal. UNDERSTANDING BIDDING WARS If the term is new to you, a bidding war is a situation where two or more prospective buyers make offers on a home, and the seller has to decide which is the best offer. This decision is often easy to make when one offer is more attractive than the others. However, in instances where multiple buyers have made almost similar bids, sellers have to make a difficult decision, therefore, buyers are forced to up their offers in order to outbid one another. That is quite common in highly soughtafter neighborhoods. WWW.THEPINMAGAZINE.COM
To improve your chances of winning a bidding war, you have to have an edge over the competition. Here are a few tips that could help. 1. GET PREAPPROVED Moist sellers will want to see your preapproval letter in order to start the negotiation process. This letter proves to the sellers that you as a buyer are capable of obtaining financing. That shows the seller that the lender has done his/her due diligence and you’re fully capable of financing the purchase. Ordinarily, a preapproval takes much longer than a prequalification, but it is well worth the wait. l
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