Buying a home, in recent years, has been difficult for many people. For a while, it might have been due to the home prices being higher than ever before. But, in recent years, investors have been buying up many of the single-family homes and renting them or tearing them down for space to build building condos or multi-family homes.
How can you win a bidding war against an investor for a single-family home? It may seem impossible, since most investors have a lot of money to work with, but that's not always what the home seller is looking for.
Get Your Finances Ready
The first thing you will need to do is get your finances ready and obtain enough liquid cash to make a down payment, to be interesting to a home seller. While you most likely can't compete with an investor and how much they can spend or even be able to pay out the entire amount at once, that's not always going to matter, to a home seller.
So, before you head out looking for a house, make sure you know how much you have to spend. Inventory all your costs, including food, utilities, insurance, and car payments, and see what's left over. Once you do, you will know how much you can bid and how big your mortgage can be.
Research The Area and Home Owner
If you are planning on buying a single-family home in an area where a lot of developers and investors are buying most of the houses for sale, then you will have to do your research. You can either decide to head for an area which fewer investors are buying into or research the seller of the home as best as you can – you can spend time talking with them to to get an idea of what's important to them in this sale.
Gather as much information as you can. For example, is the homeowner proud of their home and gardens? If you also love gardening, you could assure them you will keep it up for years to come and care for the house in the manner they did. Often, home sellers want their homes to go to someone who will love it as much as they did.
Also, research the area. Many of the residents don't want investors buying up all the property and changing the look of their neighborhood. The residents might put in a good word, if you speak with them.
Be As Flexible As Possible
A lot of investors are not as flexible about some things as you might be able to be. For example, you can be flexible on the closing date of the house, giving more time for the seller to find a new home or pack up their old one.
You could be flexible on buying the home as-is. Many investors will buy the home without renovations, as they want to do their own work on the home, causing many sellers to sell to them. If you also offer to buy the home as-is, you may be more likely to win the home.