The act of buying a home is already enough to make the average person break out into a sweat. The purchase of a brand new home is both exciting and nerve-wracking, as you will be expected to take care of and maintain one of your the most expensive possessions. Before you even get the home, you will have to go through the offer and acceptance portion of home buying. It is important to note that bidding wars are up in Maine and are a major cause of anxiety for home buyers. Here is what you need to know about bidding wars and how you can prepare.
Seek out financing approval
Pre-qualification is typical when a person is researching homes to purchase. Instead of getting a pre-qualification, seek out the pre-approval. The pre-qualification is a quick and dirty look at your finances versus a thorough and detailed overview of what you can actually afford. It is not uncommon for prep-qualifications to be higher than the actual pre-approval. If you want to know for sure that you can afford the house that you want, you will need the pre-approval.
Negotiate the money, not the contract
Bidding wars involve money, but not just money. Most sellers are also looking for a quick closing date and a buyer that will be stress-free. To this end, some sellers and seller agents may encourage you to renegotiate portions of your contract such as home inspection clauses or increasing earnest money. Be sure to stick to contract terms that are comfortable for you, despite the fact that they may not look as good in the bidding war. Protecting yourself is priceless and should be the focus for you and your agent.