4 tips for winning a bidding war in Tucson
With the high demand for housing in Tucson, being prepared for a bidding war may help potential homebuyers purchase the houses they want.
According to a report by The Arizona Daily Star, home prices and the demand for new homes continue to rise in the Tucson market. However, with a smaller supply, more people are pursuing the same properties. Being prepared for a bidding war when putting in real estate offers may help people improve their chances of winning and getting the home of their dreams.
Get pre-approved for a home loan
Mortgage loan deals falling through are a common factor in home closing delays. Thus, all other factors being equal, some sellers may opt for making deals with potential buyers whose financing is already in place or who are paying with cash. To help strengthen their cases for buying a property, people should get pre-approved for home loans, not just talk to loan officers about their potential qualifications. According to a CNBC.com report, buyers with pre-approved financing in place have a 58% greater chance of winning a bidding war.
Increase the down payment
The higher a prospective buyers’ down payments, the less money they must get through a bank loan. Should a bidding war push the price of a property higher than its appraisal value, having additional funds to put down may give potential purchasers the wiggle room necessary to put in an offer that gets accepted. Presenting financial proof, such as tax forms and pay stubs, can help support their verbal promise to put down additional money, and show they have the funds to follow through.
Sellers do not always take the first offer they receive, but it does not hurt to be at the front of the line. If they are interested in a property, potential buyers should make every effort to see it as soon as possible and quickly put in an offer. Prospective buyers may also improve their odds of winning a bidding war by making their proposed settlement dates line up with when the sellers want to close and as quickly as their lenders and title companies can finalize the deal.
Write a personal letter
The home is a central hub for many families, which can make selling a house a very sensitive and emotional process. Many people want to feel as though they are turning theses places filled with their happy memories over to someone who will love the property as they have. Writing a personal letter to sellers about how they feel about the homes and how they envision their families growing in them may help potential buyers make a connection that gives them an edge over the competition.
With or without a bidding war, buying and selling homes in Arizona is a complex legal deal. Therefore, it may benefit potential homebuyers and sellers to obtain legal counsel to help ensure their rights are protected.