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How to Submit a Great Bid for a House

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canstockphoto17639734If you’re house shopping, you know that one of the most difficult parts of actually buying a home is submitting a bid for that house. Even if there are no other current bids, bidding too low can result in a rejection and the seller might not be willing to consider another offer from your camp. Here’s how to make sure you are submitting a bid that the seller won’t be able to refuse:

  • Know how much you can spend. Before starting to formulate your bid, even with the help of a realtor, know how much home you’re able to afford. The size of your down payment and the total bid will both be factors, so if you’ve been saving up to place a large down payment, this can help offset a bid that has a total lower than the asking price.
  • Understand the market. If you’re operating in a seller’s market, you are likely going to have to make more concessions for the seller than if you were in a buyer’s market. In a seller’s market, there are lots of buyers submitting bids on the same house, some of which may be at or above asking price. In a buyer’s market, there are lots of houses for sale and only a few buyers looking. In a seller’s market, offer your very best offer first, be flexible when it comes to closing dates, and be willing to put down a larger initial payment. In a buyer’s market, you can often lowball a seller to open the door for negotiation.
  • Get preapproved for a mortgage. While a pre-approval doesn’t 100% guarantee that you will get a mortgage, it is much better than trying to find a mortgage after your offer has already been accepted. Being preapproved shows a seller that you are far more likely to be able to actually buy the house than someone who has not yet looked into getting a mortgage.
  • Work with a great real estate agent. The right real estate agent can make all the difference. They know how to work in both a buyer and a seller’s market to get you the house you want at a price you can afford. They’ll also know when to tell you to walk away from a house if the seller is being unreasonable.

Matt Demorest, President

Matt is the President and Founder of HomeSure Lending. He has extensive experience working in mortgage, finance, business development, business operations and non-profits. Matt holds a Masters Degree in Youth Ministry Leadership. NMLS #1011726

All stories by: Matt Demorest, President

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