5 Tips To Win Your Home Bidding War | Boca Luxury Condos
Boca Raton Condos... Nowhere has the irrefutable laws of Supply & Demand reared themselves so blatantly as in our current South Florida housing market. In exclusive, often high end communities like Boca Raton and its many luxury condominiums, the supply is massively lower than the demand. In some cases unless you're prepared to grotesquely outbid the market (and other bidders) it may be near impossible to win your home bidding war. Yet, against all odds, the amazing Champagne & Parisi Realtors have fought for their clients and have proven the innate value of a strong supporting presence. Through speaking with our experts, we learned about these 5 tips to win your home bidding war. Read on to get started!
Get Prequalified for Your Mortgage
A mortgage prequalification is like showing up at the airport with your bags checked and your pass stamped. Aside from paying in full with cash in hand, there is no better assurance to the home seller that they are making the right move than showing up with your qualifying mortgage. Beware, however, of online mortgage sites. Their limitations are significant, and without a local presence and in-person qualification, you're likely to be set up to fail on hollow assurances and bad info.
Add An Escalation Clause
An escalation clause is a clause in a contract that allows for a certain window of flexion in the event the home bidder is outbid by another. In a way, this is like automating your bidding to a certain threshold. Setting an escalation clause not only gives the home seller confidence in your ability to purchase the home, but it gives you a practical, hands-off mechanism to account for price fluctuations should you be outbid. Of course, the clause has a pre-defined ceiling, so you're never spending more than your absolute limit.
Provide a Personal Note to the Seller
Not every Boca Luxury Condo owner is an out-of-state snowbird seeking a second home, or an unscrupulous investor group with multinational origins. Some of us truly cherish our homes & condos, and the time we spent in them. Much like a car owner would be sad to see their longtime workhorse go, condo owners, harbor a personal connection to their space. Despite millions of dollars in the mix and a largely on-paper transactional process, a personal letter written to the home seller is a way to emphasize your respect for the space they're seeking to leave and provide them with something outside of the transaction to think about. Empathy, understanding, and mutual admiration go a long way, and there may be something in your life, not in your bank account, that the seller resonates with enough to shift their decision.
Avoid Unnecessary Contingencies
Many of our Realtors have had otherwise great, clean, easy deals get held up by unnecessary contingencies. Such well-meaning contingencies like time-to-inspect or mortgage financing contingencies might protect the buyer and seller in essence, but often leads to unnecessary red tape that has little to do with the result, and protects the seller from nothing. For instance, a 14-day home inspection contingency could be trouble if one or both parties are out of town, or if something in their lives creates an unforeseen disruption to the process. As a result, issues that could otherwise be solved through a phone call can collapse a contract, and lead to a lawsuit.
Be Available, and Communicate!
There's a saying in sports: "the best ability is availability." This quote was ginned from years of watching elite athletes lose their careers over injury - the most famous case being Wally Pipp, the otherwise gifted New York Yankees player who was replaced by Lou Gehrig. Don't let your deal get Wally Pipped! The most important thing you can do is communicate, be available, and be kind. Oftentimes the difference between a deal failing acrimoniously and a successful challenge overcome is the ability of two people to communicate and be decent to one another.
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