How Can I Win a Bidding War?
When you really want to buy a specific property, you may stop at nothing to get it. However, if you find yourself in a bidding war on a home in Illinois, you may have little control over whether you win or lose. Luckily, there are some proven tips that can help you have a better chance of walking away with the property.
Forbes explains that being aggressive and going after a property is beneficial when it comes to a hot real estate market. However, the number one rule to keep in mind when in a bidding war is to not over spend. Do not bid higher than you can afford and put yourself in a position where you may lose the property to foreclosure later. Also, do not pay more than the property is worth or you will start out losing money.
If you are still within a reasonable price range and stuck in a bidding war, start by sweetening your offer. One way to do that is to offer more cash up front. If you bring more money to the closing, it can make up for the difference between the sales cost and the appraisal, which is attractive to sellers.
You may also present your offer for the property as-is, meaning you will not require any repairs. Your lender may not allow this, so check with your lender first. You may still want an inspection just so you have some idea of what this may cost you.
Finally, make sure your financing is ready to go. If you do not have your financing in place, it makes you less attractive to sellers and can give another bidder an edge over you. This information is for education and is not legal advice.