You’ve taken the initial tour, explored every room, and pictured how the entire place will look with some new paint and your furniture. After weeks or even months, you have finally found the home you want. You call your real estate agent, ready to make an offer and get that contract hammered out. That’s when you find out somebody else has fallen in love with the exact same place.
It’s frustrating to discover you may have to bid against another part
y for a house you want to buy. If you have spent a long time looking for the right place to live, you may feel aggressive. It’s understandable – if you’ve invested this much time, the last thing you want to do is start all over again. However, you don’t want to end up agreeing to pay more for a home if you think the price is too high for the house… and if you can’t afford a raised cost.
So, what do you do? Keep nudging up the bid and hope the other party backs away? Can you afford to do that? Read more at https://www.homeward.com/blog/buying-a-house-before-selling-what-you-need-to-know/
If you anticipate such a situation, you may need to face the fact that you need a Plan B in the form of another property on which to bid. When it comes to real estate, you never want to put all of your eggs in one basket anyway – you need to weigh different factors with each home you visit and determine ideal locations for you and your family. You’ll want to look for homes in good school districts that offer reasonable commutes to and from work, and you want to find a home that won’t require too many repairs or renovations before you move in.
It’s worth noting, too, that another party can bid on the home but maybe rejected for various reasons – a bank or credit institution may not approve him for a loan or mortgage, or they may be relocated out of town – so you want to be careful how you match or exceed bids in these cases. When you sense other people are interested, you might tend to bid high initially to discourage competition, when all you’re really doing is driving up the price.
When faced with the possibility of a bidding war on a home, you want to assess the most accurate worth of the house, keep a cool head, and bid incrementally to a point. Don’t get carried away and end up committing to a price you can’t pay.