When first searching for a home, the options seem endless. But when you zero in on a particular property, things can quickly turn into a tense competition. If you're currently bidding on a beach home with other excited buyers, use these three tips to get a leg up on your dream property.
3 Tips for Bidding on a Home
1. Pre-Approved Mortgage Loan
Since a home is such a significant investment, sellers will be most likely to accept offers that they can count on. Show them that your bid is reliable by getting pre-approved for a mortgage loan. This means the lender acknowledges that your credit score and history are respectable enough to receive the loan. Presenting both the pre-approval document and your highest bid at the same time will drastically increase your chances of winning.
2. Down Payment
Perhaps you can only offer 15% of the total home value upfront to maintain a comfortable standard of living for the rest of the year. That means you’ll need to take out a loan for the remaining 85%. By increasing your down payment to at least 20%, and reconfiguring your budget, you can strengthen the seller’s trust. The more money they receive upfront, the better. To prove you can afford the higher down payment, be prepared to show the sellers your annual income with your pay stubs or tax documents, as well as your savings balance.
3. Emotional Appeal
On the surface, a home sale might seem like a competition based on numbers and legal documents. However, in reality, the property is being transferred from family to family, and there are always emotions at play. If you’re trying to win your dream home, let the current owners know just how much it would mean to you. Write a handwritten note describing your plans for a charming nursery, flower boxes on the windows, or visions of holiday dinners in the dining room. When bids are close, a pull on the heartstrings might be enough to swing the seller’s favor.
For more helpful insight on selling or buying a beach home, reach out to Sugar Sands Realty & Management of Orange Beach, AL. They sell and rent out a number of waterfront properties, from stylish condos to family-oriented beach homes. Whether you’re looking to invest in real estate or get away for a while, you can rely on their skilled team to meet your needs. Start browsing properties online now, or call (251) 974-1672 to speak with a real estate agent.