Buyers looking for that perfect home in Orlando are finding out that they need to prepare for a fight. Because of a hot market causing lower than normal inventory, hungry buyers are engaging in bidding wars everyday. Bidding in a hot market can be a fight and lately, it’s been all about who’s quicker to the punch.
In a sellers market, homes sell super fast once they’re listed on the MLS. Getting your offer approved amidst all the competition can be a huge challenge. In this situation, many factors are just out of your control. However, there are certain steps that you can take to make your offer more attractive to the seller.
When house hunting, you should enlist the help of an Orlando buyer’s agent as opposed to trying to go it alone. Weeding through dozens of homes by yourself that you find on the internet to find one that suits you just isn’t very fun at all. Once you’ve found one that you love, then it’s time to place an offer on it. Many buyers will already have a number in mind but if you’re not sure how much to offer however, your realtor should be able to assist you in finding the magic number. Experienced realtors can prove to be extremely valuable in this situation by providing the buyer information about the area like recent comparables of other properties in the area.
Tips on getting your offer accepted, Bidding in a hot market:
Get your financing in order. Speak to your mortgage broker or lender before you even start looking at homes. By knowing how much mortgage you can afford in addition to having a pre-approval letter will put you way ahead of the game. You should also know that being pre-approved and pre-qualified are two different things.
The difference between Pre-Approved and Pre-Qualified
Pre-qualifying for a loan basically means talking with your lender about your financial situation, income, etc. then the lender will give you an approximate amount of how much you SHOULD qualify for.
Pre-Approval includes submitting a loan application together with income statements, list of assets, list of expenses, etc. With a complete loan package in hand, your mortgage broker will be able to shop out a loan that would meet your specific needs. It also gives the seller piece of mind knowing that your contract is solid and won’t fall through because of financing.
Don’t submit a lowball offer! In a hot market, many properties sell for above the listing price. Submitting too low of an offer is the best way to get your offer denied and you may not even get a chance to counter, especially if there’s another competitive offer on the table.
Give them a bigger deposit then they asked for. By putting down a larger deposit, it allows the seller to see how committed you are to making the deal happen.
Eliminate as many contingencies as possible. If the seller has to worry about the buyer selling a home or appraisal value falling short, etc. Then the offer becomes less enticing to the seller. By keeping your contingencies to a minimum, the better your offer will look to the seller.
Pay cash. For most people, this isn’t even an option. However, if you’re able to submit a cash offer with a quick close then this will surely get your offer to the front of the line.
Even if you do everything on the list above, it still may not get your offer approved. But by doing as many things as you can to make your offer more attractive to the seller, you’ll know that you did everything in your power to get that offer approved. If it was meant to be then you’ll be living in your dream home real soon. If you find yourself in a bidding war with other buyers, it’s good to know that you have an experienced realtor in your corner.