If you are thinking of buying a home in a seller’s market, or a home that is very sought-after, you may find yourself in a real estate bidding war. This might overwhelm you, or have the opposite effect and bring out your competitive side, but before engaging in an all-out battle, you may want to take a step back and think things through a bit.
If you have already made several offers on different homes and been rejected because of competing buyers, you may be feeling pressured to make an aggressive offer on the next home you take a fancy to. Don’t push yourself to participate in a bidding war just because you feel pressured to buy a house RIGHT NOW. Instead, think about how much you really want that particular home and how much you’re willing to fight for it.
To avoid making rash decisions based on emotions, you may want to take another look at your finances. It might feel good at first to win against all the other buyers, but you won’t feel as good in a year or two if you find yourself struggling to make payments because you purchased a home beyond your means. In short, before you begin to bid, establish your boundaries and know your limits.
One of the first things you should do before entering a bidding war is to meet with a lender to find out how much you can borrow, and to evaluate how much cash you have to spend while still setting aside enough money in your reserve fund. Secondly, you should definitely consider working with an experienced and reputable real estate agent who can share with you valuable knowledge about your local market conditions. Ask them for advice on how to handle a bidding war, and be sure to understand the value of various properties before making an offer.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
