The real estate market is hot. Inventory remains low, creating competition among the homes that are for sale. In fact, bidding wars are becoming the norm, not the exception. A recent article posted on CNBC reported that homebuyers are stretching their budgets and mortgage limits to win bidding wars.
Bidding wars are not all about money, however. In other words, the highest bid doesn’t always win. Favorable bids have few to no contingencies, quick close times, and the reassurance of a loan approval. Sellers want to know that the sale will go through without any problems. For this reason, cash is attractive these days.
Tips for Winning a Bidding War
Those in the market for a new home can anticipate a bidding war. Susan Pinkston, a Mississippi real estate lawyer, shares practical tips to help you come out on top.
- Come with cash if you can
- Get pre-approved for a loan
- Write a personal letter
- Offer more than list price
- Drop unnecessary contingencies
- Choose an earlier closing date
- Pay earnest money
- Provide all financial information
For buyers who are seeking financing, the best approach is to show as much documentation as possible. A pre-approval is a great start, but this only means that the initial numbers check out. Have a lender picked out and begin working with them on a loan. Another person you need is a real estate attorney.
How Real Estate Attorneys Help
Real estate attorneys are an important part of each transaction, especially during a time when people feel more rushed to make a decision. A Mississippi real estate lawyer can make sure that you are making a smart investment for your money and your end goals. Even seasoned investors benefit from these services as there are many gray areas that require legal assistance.
Here are some of the things that a real estate attorney can help with.
- Purchase price
- Debt placement
- Return on equity
- Strategy of investment
- Property tax implications
- Leasing terms and strategies
- Landlord-tenant dispute prevention
- Negotiating with contractors
Whether you are a seasoned investor or a new home buyer, call Susan Pinkston for reliable real estate advice.