Prepare Yourself for the Home Bidding War

Are you a full-time employee? Do you think this money is not enough to build your own equity and secure your future financially? Do you wish to spawn a new way of revenue generation? If yes, then you might want to consider investing in a foreclosure.

Here’s what you can do, buy a foreclosed home in the US at a low market price, rent it out at a similar rate as the properties in the surrounding and earn in US dollars through rentals every month and start growing your equity while living and working in Canada.

Investment in foreclosed properties on US soil is rewarding for Canadian buyers, but to earn this reward you will have to put up a fight. Prepare yourself for the home bidding war. Since foreclosed are auctioned at low market prices, many investors bid for it.

So, today we’ll be sharing with you some great strategies to gear up and increase your chances of winning the home bidding war.

• 1.Cash is the King- Present Yourself as a Cash Buyer

According to a report presented by Realty Trac, in the first months of 2014 all cash deals on home sales hit a record 43% showing a 19 percent increase in US real estate cash deals. It is a no brainer, that clearly in today’s real estate market cash buyers have a winning edge. Therefore, when bidding for a foreclosure that you think earn you great rentals, make a cash offer.

Furthermore, home sellers also prefer cash buyers more because cash offers are more attractive and such deals are closed in a timely manner.

• 2.Non-Cash Buyers- Get Mortgage Pre-Approval

For non-cash mortgage pre-approval is important to battle it out with potential cash bidders and have equal chances of winning the bidding war. Make sure you have a copy of your proof of funds along with a strong mortgage approval. To get a pre-approval, you might have to take a four months head start.

Wondering why pre-approval is important? Your Mortgage pre-approval is a proof. It shows to the seller that the lender has verified your income, your credit score and determines that you have the financial power to afford mortgage payments.

• 3.Don’t Delay- Take Fast Action and Make Your Offer

Don’t delay for the right time to make your offer. Once the home goes on auction, hire a professional to evaluate the property for you and accordingly make your offer. Also, be flexible when making your offer. Personalize the offer according to the seller to make it more attractive to him/her. Quick actions and flexibility can act as game-changers and help you increase your chances of winning the home bidding war.

Good Luck!