How To Handle A Bidding War
So you have found the home
of your dreams, it has all the features you want, and it is in the right
neighborhood. Even the price is right, but suddenly you find yourself in a
bidding war with one or more people who also think this is the perfect home. This can be a stressful and sometimes even
heartbreaking experience, but what knowledge should you arm yourself with
before entering a bidding war with other potential buyers? Here are a few important tips to remember in
order to get the house of your dreams without breaking the budget.
Know Your Budget
Having a good idea of what
you can afford and knowing your target price can really prevent you from making
a bid that you may ultimately not be able to honor. The best way to do this is to get
pre-approved for a mortgage before you begin house hunting. That way you will be certain of what you can
afford, and if you do find that perfect house you will be able to move quickly
to make the purchase.
Know Its Value
While the home for which
you are involved in a bidding war may be the house of your dreams, paying
considerably more for it than it is worth is never a wise choice. To avoid getting yourself into this
situation, do your homework before making an offer. Look at the value of similar homes in the
area, and contact a real estate agent or expert to determine the fair value.
Know What You Are Paying
For
Getting the results of a
home inspection, determining what features actually come with the house, and
knowing how much you will have to spend to get it in livable condition will
give you a clearer picture of what you are paying for, what comes with the
house, and what your budget can hold.
Bid Smart
The fears in any bidding
war are that your bid will not be the highest, or that the bidding will keep
raising the price higher and higher. To
prevent this from happening your best approach in any bidding war is to bid
right the first time. If you are
prepared to bid, making your best offer first time around will prevent your bid
from being rejected due to another higher offer. Bidding odd amounts can sometimes make the
difference between your bid or another being the highest.
In general, being caught
in a bidding war for a home you really want is always a stressful situation,
but armed with these few tips you can end up with the house you want at the
price you are prepared to pay.
