Fixing and flipping homes has become a definite trend among investors in recent years, and for good reason. When done right, you can really take in the cash, making huge returns on your investments. However, because this investment method is becoming so popular, bidding on houses is becoming more and more competitive as the years go by. Entering bidding wars is anything but easy, especially if you’re new to this type of business, but there are a few things you can keep in mind throughout the process to make things easier.
Get Prepared
Before you even start eyeballing houses that you might want to pursue, you need to get your finances together and start collecting some cash to have on hand. If you’re able to prove that your credit is up to the challenge and can bring a formidable sum of money to the table, you’re more likely to win the seller’s attention than other interested parties.
Go for it
Don’t wait around to see what the competition’s going to do. If you’re interested in a house, move in and make your bid quickly. Sellers will take note of this confidence, and this will give you better chances than you’d have if you wait in the background and leave yourself unknown. You may even be able to avoid bidding wars altogether.
Use the Escalation Clause
Define how much higher you’re willing to raise your offer if another bid is made. This way, if there’s another bid, you won’t necessarily be out of the running immediately. This clause may require a little extra work, but it’ll pay off in the long run.
Inspect Before Purchase
Ask to perform a preinspection before submitting your bid for consideration. While this might not necessarily help you win a bid war and it tends to cost a few hundred dollars you might end up taking as a loss, it helps to ensure that the property you’re bidding on isn’t going to be a bust. The last thing you want to do in this industry is to purchase a flop, and this is the best way to ensure you’re budding on quality real estate.
Express Interest
Really let the seller know how interested you are in a house. Oftentimes, people who’ve lived in a home for a long time will want to pass it on to someone they know will take care of it. Talk about your plans for the home and how much you look forward to the purchase. This goes a longer way than you might think.
In the end, avoiding bidding wars is better than winning one, but these tips are guaranteed to make the process easier if you find yourself involved.
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