With the real estate sector being one of the major contributors to the global economy, investment in this segment has gone up significantly over the last few years. As more and more investors look to find foothold in the vast market, the competition also tends to play high stakes with the investors.
Bidding plays an important role in determining the ownership of any property. However, winning a bidding war depends as much on planning and strategising as on luck of the bidder. It is also important while planning your bidding strategy that you don’t get too caught up in the high-intensity drama of bidding and end up paying more.
Here is a list of strategies that can help you win any major real estate bidding war.
Getting the money
The most important aspect of entering into a bidding war is to get the money ready. You can take help from the banks if necessary. With the monthly carrying cost increasing only slightly more and more people are looking to pay more for homes.
Doing some prior research work
Investing in property being one of the major investment decisions, more time should be given in analysing the true value of that particular property. The property you are investing in should be worth the money you are putting in.
Don’t get intimidated by high bidders
With the price of a property going up, it’s not necessary that you go on bidding to get what you desire. You must have a clear idea on what your needs are and what amount you can spare.
Get adequate information about the broker
There are not many well-known brokers in the market. Only about 20% of the total brokers operating have sound knowledge on the business aspect and that is why it is necessary to choose wisely.
Keeping an eye on mortgage lenders and the rates
The lender providing you a mortgage should be genuine and that is why you should have a written record of the details of the loan and mortgage that has been taken. Similarly the mortgage rates tend to fluctuate based on the performance of the market.
Making a clear offer
Making a clean offer is important because it ensures that the bidding process is not dependent on loans, selling of your previous house or even waiving the inspection.
Giving it a personal touch
Even though it might not sound to be an encouraging option, sending a letter to the seller informing him or her about the necessity of that particular house in your life can be crucial. This can help you get personal favour which you would not be getting otherwise.
Knowledge on the right time for walking away
With developers looking to strategically place the prices of the properties in order to attract maximum investment it is important that you do not get too carried away by the high prices and end up spending more than you had calculated.
Providing the seller with a certified cheque could ensure that you mean business and prevent him or her from selling it elsewhere.
Being more flexible
Lastly, being flexible to the demands of the seller can be an ideal option as it would help you to avoid any additional conflict with the seller.
At the end thus it can be said that planning and strategising are the most important parts of real estate investment. If you can do these things well you can guarantee positive results.
Edward Gary from GetPRed.com is the author of this post. He is a financial advisor and suggests opting for binary options trading which are one of the most innovative and simple ways to make profit the smarter way.