If we are caught in bidding when purchasing a home, price is undoubtedly one of the most key factors, but several other factors will affect the result just the same.
The offer that wins the bidding may not necessarily be the one with the highest bid. Conditions in the offer may have a great impact on the seller’s decision as well. The more conditions an offer has, the greater protection it gives to the buyer, but the less attractive it is to the seller. Because for the seller, this means there will be uncertainty, if the buyer exercises the right to not proceed with the purchase, the seller will have to re-list the property back to the market.
The seller dislikes the financing condition the most. With the current bidding wars, if there is a financing condition in the offer, the probability of winning bidding is very slim.
The following actions are very critical and can increase our chance of winning the bidding:
- Obtain a mortgage pre-approval letter and know your exact budget before viewing the houses.
- For freehold properties, hire a home inspector to conduct an inspection before bidding. Join the bidding only if the report is satisfactory, otherwise, look for some other properties.
- For condominium properties, get the Status Certificate from the listing agent first, and have your lawyer review and provide feedback before bidding.
If you have any recent plan to sell or buy a home, please call Priscilla Han at 647-360-8963 for a FREE consultation. I can cater the property search for you, including some great deal exclusive listings. For Sellers, I guarantee to sell your home, or I'll buy it myself!
Post a comment