Ask any experienced homeowner and they'll tell you that buying in a 'hot' real estate market can be challenging. A high supply of buyers competing for the few homes available is just one factor that leads to bidding wars, price inflation or other headaches! There is good news however and with some careful planning, preparation and the right mindset, a bidding war is one where you can "win".
See how you can beat out other bidders by making an irresistible offer.
Start With An Amazing Hawaii Real Estate Agent
Let's be honest, are you a good negotiator? do you have experience in high value negotiations? Do you buy and sell a lot of homes? Are you familiar with the home purchasing process in Hawaii. You don't want to find out that you're not that good of a bargain hunter or negotiator in the middle of a bidding war. So start with an experienced and reputable Hawaii realtor.
Invest the time in securing the services of an experienced real estate agent who has a history of successful home purchases and happy clients.
It's always fine to ask a prospective agent if they can offer a recent testimonial so you can hear how they helped other buyers.
You'll Want To Have Pre-Approval Letter From a Lender
In a hot market, not having a pre approval letter from a reputable letter is just about a non starter. If you were trying to sell your Hawaii home in a hot market you probably wouldn't entertain any offers that weren't serious.
Your goal is to secure pre-approval for your mortgage financing, which will show the seller that you're both prepared and serious about buying their home.
Gather up recent financial information like pay stubs, tax returns and bank statements before meeting with a mortgage professional.
Being prepared will make the approval process a bit easier.
Additionally, sellers are considering everything in a bidding war and having strong financials with more cash down is a definite plus in your favor.
Be Ready for the Appraisal and Inspection
Your dream home will have to be inspected and appraised for almost any type of loan. Be prepared for surprises here. Some times homes appraise way under or over the offered price. Are you and your lender ready for such contingencies. It's important to know exactly how much cash in hand you are ready to spend to close the deal.
The same goes for inspections. Sometimes the inspector will find a very major issues. Depending on the deal this could impact your cash reserves.
Be Ready To Close
Finally, if it isn't already obvious to them, make it clear to the seller that you're interested in closing quickly. Every home seller is interested in a fast, efficient close so they can move on. Pushing the pace a bit will demonstrate that you're not going to reverse course.
When you are ready to buy your dream home, I am here to help. Contact me today and I'll share how I have helped other locals buy some amazing properties. I am look forward to meeting you!