So you are interested in a house and land around Tarneit but are facing serious competition. You know that if you don’t act quickly, you’ll most likely lose out on the Manor Lakes home of your dreams. How do you beat the other buyers to the house but still avoid overextending yourself?
Well, there are a few smart strategies to do that. Here are three of them.
1. Have a Budget
Few things can elicit strong emotional reactions as seeing a home you like and realising that someone else might get it. That’s when many homebuyers overextend themselves to win the bidding war. But realise that if you buy a home that’s bigger than you can afford, the mortgage and bills will soon shock you into reality. So, create a budget and stick to it, no matter what.
2. Get a Mortgage Pre-Approval
To be taken seriously in a seller’s market, you need to prove that you can indeed pay for the home. That’s why you need to get preapproved by a lender first. Without a preapproval, you are little more than a Sunday open-house browser, and other serious competitors have a better bargaining power than you do.
3. Make the Due Diligence Period Short
The due diligence period can be quite stressful for the seller as a buyer might find a better home and exit the deal. If you are sure that the house is in good condition, you can tell the seller that you are willing to shorten that period from the usual 30 days to 14. That makes your offer more appealing, especially if you competitors insist on the full due diligence period.
Buying a home in a hot market can be a tough call, especially when there are multiple bids on a house you desire. But with a few smart tactics, you can stay ahead of the pack and snap up the property with little hassle.