Because there are more prospective purchasers than there are available properties, there is a bidding war. According to experts like Tooting estate agents, there are certain things you can do to increase your chances of success if you’re trying to move and are up against the competition. A lucky one in five sellers receives bids from five or more purchasers, giving them the chance to sell their property for more money. More than one-third of homes receive at least three offers. Even more, people are vying for available properties in some places.
Market rivalry is excellent news for homeowners wanting to sell their homes, but it may be frustrating for prospective buyers. Making your offer more appealing could increase the likelihood that it will be accepted. Here are five options for you.
Have a basic mortgage prepared.
An official estimate of how much a lender will permit you to borrow through a mortgage is known as a “mortgage in principle.” It doesn’t mean you can borrow, but it does mean the application process will go smoothly and that you are in a position to do so. Buyers may feel more confident in your offer if you have a mortgage in principle on hand, especially if they are expecting a rapid sale.
Although first-time buyers frequently use mortgages in principle, it doesn’t follow that those who already own a home cannot do so. It can be helpful if you want to dramatically boost the amount you borrow. You do not need to utilise the lender with whom you have a mortgage in principle when you apply for a mortgage. But it can be really helpful to spend some time right now learning about loan requirements and interest rates. Selecting the appropriate vendor could make all the difference in a bidding battle because the amount that lenders will be ready to offer you varies.
Emphasize it if you’re not part of a chain.
When a seller must choose between many offers, it’s not always about the amount of money offered. They could desire to sell the property rapidly in some circumstances. If the property is in Tooting and you want to know the accurate value then you will have to choose property valuation in Tooting to make a quicker decision. If this is the case, being independent of a chain may help you stand apart. When a house sale or purchase is reliant on another transaction, it links buyers and sellers together in a chain. For instance, a sale of your current house might be required in order for you to purchase the property you desire.
When there is competition in the market, this can benefit first-time and cash purchasers. You may finalise a property transaction in a couple of weeks rather than months without a chain dragging down the process.
Prepare your attorney before submitting an offer.
Typically, you would speak with a lawyer to begin the process after an offer has been accepted. But much like having a mortgage in principle, having a solicitor lined up from the beginning might improve your offer and show that you’re committed to purchasing the property.
Write down your offer and include a personal note.
Even though selling real estate is a business transaction, homes have significant emotional significance. Giving a seller some personal information and outlining your reasons for wanting this particular property can occasionally influence their decision in your favour. You’ll frequently make oral offers through the estate agent. Putting your offer in paper gives it more substance to the seller and enables you to make it about more than the required amount.
Prepare yourself to raise your offer.
While the aforementioned measures can make your initial offer more appealing, be prepared to increase it and haggle if other buyers are interested in the home.
Some vendors will reply with a counteroffer, while others will request the highest and best offers. Before submitting a new offer, give it some thought. You might want to discuss modifying the terms. Would you be prepared to pay more, for instance, if they left certain furniture behind or upgraded particular aspects of the property?
Having said that, be ready to go as well. Consider the value of the house and your budget. When you fall in love with a property, it can be tempting to submit a bigger bid, but if your mortgage application is rejected, you may lose the property later on. Keep in mind that there will be additional houses for you to explore in the market.