When Should You Walk Away From A Bidding War for a Home?

Bidding wars are stressful, especially in a tough housing market like todays. With so little inventory around, many buyers are having to fight each other over homes which results in higher prices. It’s important to know when to pick your battles and that means knowing when to bow out and when to take the fight.

Signs You Should Leave A Bidding War.

You Feel The Price Was Already Too High.

There’s a difference between bidding to try and snag a home for a decent bargain and bidding while knowing that you’re already overpaying before the war even begins.

Talk to experts, get appraisals, and make sure the home is at a decent value before going into a bidding war. Do not risk having to take a loss or not getting the full mortgage amount on an overpay.

There’s Multiple Buyers Competing.

When more than two parties attempt to bid on a home, the prices have a good chance of skyrocketing. Not only will this make the process more stressful, but it significantly decreases the odds of getting the home for a fair price.

You’re Not Sold On The Home.

Ask yourself: Is this the home worth fighting for? Walk down your list of ideals and make sure the home you’re going to go into a bidding war for is worth the hassle and, potentially, worth the chance of overpaying.

When Should You Try to Win?

It’s also important to realize when a home is worth fighting for. If the home is perfect for you or you think you can get it at a great price, then it’s probably worth going into and winning a bidding war.

How To Win A Bidding War?

Here are a few tips to help you succeed and lock down your dream home:

-        If you can, pay in cash: Sellers love a cash offer. It makes the process move quicker, you can avoid financing, and you can expedite the closing process. A win-win for all sides makes this offer more desirable for sellers.

-        Work with an experienced real estate agent: A seasoned real estate agent will know when to bid, when to leave, and how to get you your dream home.

-        Make a clean offer: Try to make the seller an offer without contingencies or stipulations that could slow down the closing process.

In a tough market, it can be difficult to avoid a bidding war. It’s important, though, to understand when to leave, when to fight, and how to get the best price.

For questions regarding real estate law, schedule a consultation with the attorney at Lee Scott Perres, P.C.