Competitive Markets - Winning Techniques Still Needed!

Knowing the real estate crisis, you may believe buying your desired property is piece of cake. But you may be surprised - there are properties, which are so unique and/or the conditions are so excellent, that you will find yourself in battle with half dozen of serious buyers. What to do to be the first one?

First step: Get prequalified

Prospective clients who can get prequalified for a bank loan always have a better chance of getting the deal than applicants without a proper financial background. Don't leave the seller in doubts about your financing. Without this, all the following tips are useless.

Second step: Explore what the owner wants

Try to find out about the seller's expectations, as it would be a waste of time if there were some details that you were not able to meet. It is therefore advised to find out all the conditions accompanying the sale of a property you want to bid on.

Third step: Price, price, price...

Now it is important not to propose an offer that is significantly below the fair price of the home, as this would probably make you an unsuccessful candidate and the seller would choose another buyer. Once you damage your reputation, it is not improved even after bidding a higher offer later. It is recommended to bid about $1,800 to $4,800 more than the highest expected proposal. Let's say the highest bid is thought to be $470,000. Adjust it to to $473,164 - don't limit yourself to an even number!

Fourth step: Down payment

The usual, best looking amount of the down payment is between 10% and 20%. Later it is often possible to talk about the precise down payment price with the seller again, after you have closed the deal. The most important thing is the amount you pay when the deal is closed so that you look like a trustworthy buyer.

Fifth step: Another deposit

The following tip might look a little too determined, but it may help you a lot. Pay the earnest money deposit as high as you can afford, as part of the down payment. The earnest money deposit would be lost if you change your mind later and decide not to go through with the deal. It doesn't matter to you anyway, because the earnest money deposit is the ground of the down payment in any case, but for the seller it means a lot. That way the seller knows you are for real. This means that the earnest money deposit serves as a measure of your real interest in buying the home, regarding the fact that after signing the contract, you can usually change the amount of the down payment. You have to understand, that especially exclusive segments, like luxury homes, are quite sensitive to your ability to pay when needed. This can calm them dawn...

Sixth step: Be a gentleman

In the summary accompanying your offer, offer a free-post occupancy agreement to the seller in case they need a some time in the property after it's been sold to settle their affairs. Normally you would negotiate rent, but giving the option of free occupancy for a short period of time might be the detail that decide whether the seller will go for your offer or not.