Tips When Bidding On A House | Home Buyer Guide
Purchasing a property is one of the biggest financial decisions you will make in your lifetime. It is important you are aware of how the process works to give yourself the best possible opportunity to secure your dream home.
Here is a step-by-step guide on how to bid on a property:
1. Get Your Mortgage Approval:
Having a mortgage approval signals to sellers and the estate agent that you are a serious and a qualified buyer. Most estate agents will ask for proof of approval before they allow you to bid on a property. It can also speed up the closing process.
2. Set a Budget:
Once you receive an approval you can determine your budget and how much you are willing to bid on a house. Along with the purchase price it is important that have additional funds in place to cover costs such as, stamp duty, solicitor fees and potential renovations.
3. Research the Market:
Understand the area you are purchasing. Know the recent sales prices of similar properties in the area to gauge the propertys fair market value. You can look up what previous properties sold for in an area on Property Register Ireland.
4. Inspect the Property:
Conduct a thorough inspection of the property to identify any potential issues. This information can be used in negotiations or to adjust your bid.
5. Understand Sellers Motivation:
If possible, try find out the sellers motivation for selling. This information can help you get an appreciation of a completion timelines e.g. are they sale agreed on another property? Are they moving overseas? Etc.
6. Flexible Closing Date:
If you can be flexible with the closing date, it may make your offer more attractive to the seller. From your own perspective it is important to see if the property has to go through probate as they could delay the closing process.
7. Quick Response Time:
Be prepared to respond quickly to counteroffers or other negotiations. Quick communication can demonstrate your commitment.
8. Stay Calm and Patient:
Bidding wars can be stressful, but it is essential to stay calm and patient. Set a maximum limit that you are willing to pay and stick to it.
9. Know When to Walk Away:
If the bidding goes beyond your budget or comfort level, be prepared to walk away. There will be other opportunities.
Remember that the housing market can vary, so it is crucial to adapt these tips based on the specific conditions of the market you are dealing with. Click HERE to make an enquiry on how you can start your mortgage journey.
