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Realtor knows best – the bidding process

bidding and buying a homeIn order to buy a house, you need to make a bid on one. While there are no set rules on how you figure out a price when you’re bidding on a home, here are some guidelines that will help you along the way.

Your real estate agent is one of the most important assets in the bidding process. Even if you have purchased a home in the past, your realtor has been in this situation many times and has a better understanding of how it works.

Do your homework

Get your finances in order before you start. Know how much you can spend. Don’t even look at homes outside of your price range. Dreaming is great, but be realistic while home shopping.

A mathematical equation that will tell you how to bid on a home does not exist. Using comps to see the value of other similar properties can be a big help. Be sure to look at the asking price and the selling price, not just the asking price of the comps.

Keep a close eye on the neighborhood. If homes in the area are going fast, making a lowball offer is not going to fly. Your agent has to make the offer on your behalf no matter how ridiculous or out of line it may be. That doesn’t mean the seller won’t be insulted nor do they have to accept your offer. If a home has been on the market a long time, you have a better chance making a lower offer.

Looking at a home

Over enthusiastic displays while looking at the home can give away how much you want it. Be happy, but keep it low key until you are out of earshot of the homeowner or his agent. You don’t want to give them any extra leverage.

Only offer more than the asking price if multiple buyers are interested in the property. A fabulous home in a hot neighborhood can sell in a matter of hours.

If the seller finds your offer interesting, the process truly begins.

Your agent

Remember that your agent is your best ally during the home buying process. That’s why you hired an agent in the first place. Trust the agent’s opinion because it is in everyone’s best interest to get the bidding done correctly.

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