The real estate market in various areas of the country continues to be hot – and that is especially true for Lake Oconee. There is a high level of demand from buyers and very little inventory to purchase. This drives prices up and means that many times you’ll enter a bidding war with other interested buyers. Bidding wars are not ideal for buyers because it means the price to buy is going to be higher than normal. If you want to buy a home in the Lake Oconee real estate market, and you don’t want to overspend in a bidding war, what can you do?
Tips for Willing a Real Estate Bidding War
Working with an expert real estate agent will help you minimize the risk of overspending in a bidding war. However, there are a few strategies you can employ to get the home you want, even when there’s competition.Know What’s Important to the Seller
Price is always a big deal when it comes to selling a home, but there’s often more than the seller wants and needs. For example, they may need a fast close so they can move to their next location soon. If you learn what the most important factors are to the seller, something your real estate agent can help you with, that could mean you can present a better offer to them, one they will accept quickly.Be a Cash Buyer
Has hard as it is in some situations, the Lake Oconee real estate market’s competitiveness makes it favorable to those who are cash buyers. These buyers may still pay the same amount, but there is no long, drawn-out process and closing from the lenders. That ends up saving you a substantial amount of money by skipping the bidding war altogether, especially from a home seller that wants to move quickly.Ensure You’re Ready to Buy
If you plan to use a mortgage to buy your next home, ensure you are pre-approved by the lender and ready to go. The lender should provide you with a letter outlining this approval that you can show to the seller as a way to show you’re serious about the transactions.Offer a Large Earnest Money Deposit
Having more money to put down on an earnest deposit helps the seller to see you’re super interested in the property and willing to take on a bit of risk to get it. It’s a good idea to work closely with your real estate agent to ensure you don’t overdo it here, but that deposit shows you’re serious.Be Willing to Offer Concessions to the Seller
Many home buyers don’t want to hear this. They want to be reassured the home they buy offers everything possible to meet their needs and is in perfect condition. However, when you can offer some concessions on your dream home, it’s worth doing so.For example, you may offer to take care of some of the home’s repair needs before the close occurs. That’s important in situations where you may need an FHA loan and the inspection reveals issues that need to be touched up. Speaking of inspections, if the home inspection reveals concerns, you may be willing to pay the contractors to fix them before the sale closes.
Another type of concession is to offer to pay the seller’s closing costs. That puts more money into the pocket of the seller and tends to be a very favorable factor in making the decision to buy a home.
Consider the Value of an Appraisal Gap Guarantee
When you work with an expert real estate agent in a very hot market, you may be able to put together an appraisal gap guarantee. In some areas of Lake Oconee real estate, home values are on the way up very quickly, and that means there are sometimes gaps in appraisals – what the home is sold for and what the home is worth on paper.An appraisal gap guarantee means that you’ll make up the difference if there is a gap in the appraisal, making it less likely such a situation would lead to a failed transaction and offer.
