If you are a military member shopping for homes for sale near Fort Sam Houston, you are most likely pressured by time constraints when it comes to buying a home near Fort Sam Houston for your PCS move to San Antonio.
Given these time constraints along with the fact that inventory of homes for sale near Fort Sam Houston remain low, it can be hard for military members to buy a home.
In this type of scenario, it is common to see multiple offers on homes and buyers engaging in a bidding war to beat the competition.
How do you make sure that you could win the bidding war for a home for sale near Fort Sam Houston?
Follow these tips to ensure that you could beat the competition:
1. Be prepared. Lenders prefer borrowers with good credit standing and sound financial history, so make sure to get a copy of your credit report and dispute any items that may affect your credit score negatively. Lenders are more willing to give mortgage loans with lower interest rates to borrowers with higher credit scores.
Shop ahead for the right loan and get a pre-approval before you begin shopping for loans. A buyer with a pre-approval letter is an attractive candidate for sellers of homes for sale near Fort Sam Houston.
2. Make a reasonable offer. In the current market with low home prices and lots of competition, low-ball offers will definitely be rejected to make way for higher bidders. Base your offer on recent comparable sales in the neighborhood and don’t insult them by asking for a price way below the fair market value.
3. Put down a significant amount of earnest money. Earnest money deposit is paid to the seller as an assurance that the buyer will continue with the purchase. Sellers will not take their listing off the market and miss out on other potential offers if they do not have any assurance that you are serious about buying their home for sale near Fort Sam Houston. The typical amount of earnest deposit depends on the price of the home and the area, but if you are competing with multiple offers, you may want to consider giving an amount which is above what is customary. Make sure you meet all the requirements and deadlines set by the seller so you don’t end up losing your earnest money deposit.
4. Dig deeper. Whether you are working with a San Antonio real estate agent or working directly with the seller, dig into their reasons and motivations for selling the home and use this to guide you in making an offer. Military homeowner who are selling their homes near Fort Sam Houston will be working with a tighter schedule and would appreciate an offer which includes a shorter escrow period. When a military member is expecting a PCS move, it would be hard to specify a closing date. Knowing this type of information from the seller and taking their needs into consideration when making an offer will surely give you an edge over other bidders.
5. Limit your contingencies in the offer. Buyer contingencies include finance and inspection contingencies, which allow a buyer to back out in case their financing isn’t approves or if the inspection uncovers damages that they think are too expensive to repair or are unacceptable. These contingencies make sellers nervous, so limit them as much as you can. If you are planning on including a financing contingency, you could show the seller a copy of your financial statements to show that you have the necessary funds to make a downpayment on the home for sale near Fort Sam Houston.
6. Eliminate the non-essentials. If you do not need any seller assistance with closing costs or a home warranty, then don’t include these in your offer. These items are “nice to have” but they could put your offer at risk of being rejected. Ask only for things you need to close the deal.
7. Consider an escalator clause. An escalator clause in the offer states that in case there is a higher offer for the home, you can offer the seller additional money. Make sure to base this additional amount on the financing or actual cash you have so you don’t make the mistake of making an offer which is way beyond your means. Don’t let your emotions get in the way of making an offer. If a higher bidder wins, then take solace in the fact that they probably paid more than the home is really worth.
8. Keep your cool. In buying a home for sale near Fort Sam Houston, make sure to use your head and not your heart. Always consider your parameters such as how much home you can afford, the location of the home, the current condition of the home, and how long you will live in it. Also consider your financial standing now and in the future.
Even in the frenzy of a bidding war for homes for sale near Fort Sam Houston, make sure to keep a level head and have an organized and practical approach.
The Real Estate Muses are ready to help you through each step of the home buying process so you can move into your new home soon.
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