Most of us know (or at least have a general idea) how the traditional house-buying process works. But what happens if you’re looking to buy in a time-limited event? Are things drastically different? Should you plan on walking up to the house with briefcases full of cash like something out of a Scorsese film?
The good news is it’s a lot simpler than you think, and many things stay the same. You have two options when it comes to time-limited events.
Time-Limited Event Option #1: Offer Before or After
One option that buyers have is to make an offer before or after an event takes place. In this case, you go through the same process as a traditional home purchase. Contingencies, home inspections, showings — it’s all the same.
But just as is true with the traditional process of buying a house, the seller can reject your offer. And in terms of financing, it’s good to note that certain loans (such as FHA or USDA loans) might not qualify for various properties. Any houses up for sale in a time-limited event that don’t meet certain requirements (like having lead paint or not having a working furnace) won’t be approved.
Time-Limited Event Option #2: Wait Until the Day Of
The day of the event, you can place a bid and submit a letter of intent. On our site, this is found in the “documents” tab of the property. You’ll be able to see bids from other interested buyers. If your bid is accepted by the seller, you’ll buy the property as-is.
A few things to note:
You won’t get any inspections and cannot write any contingencies.
In a time-limited event, you’re purchasing the property as it currently stands. While you can schedule an appointment to look over the property before the event, you can’t get an inspection and you can’t back out if you suddenly see a ton of issues with the place. If your bid is accepted, it’s final.
Sellers choose which bid they want to accept.
In most auctions, the largest amount of money offered is the winning bid. The property will go to that highest bidder. This is not the case with a time-limited event.
In TLEs, sellers get to review the offers and have the final say (one of the many reasons a TLE is so beneficial for selling property). They might choose the highest bid, but they might also go with whatever seems like the best offer.
Based on the above scenario, you can see why a seller would be motivated to go for a lower bid price if it means less hassle.
Benefits to Buying in a Time-Limited Event
When buying with RealtyHive you gain access to:
- A marketplace of motivated sellers
- An opportunity for cash back at closing
- A chance to purchase before auction event
- The potential for an expedited closing process
Ready to get your feet wet? Look through our listings and place your bid (or pre-event offer) today!