You’ve finally found your dream house, and you can’t wait to submit a bid! However, you’re not the only one interested: You have competition. A situation like this is likely to occur when you’re in a seller’s market, and it’s critical that you know how to navigate it.
If you get caught up in a homebuyer bidding war, you’ll want to be sure to avoid the following mistakes:
- Bidding all your money: It can be easy to get caught up in a bidding war, but the last thing you should do is bid the entirety of your budget. It could make things very tight financially speaking, especially since you should put aside money for things like maintenance and repairs.
- Lowballing the seller: If you know there’s another buyer in the picture, don’t try to submit a lower offer thinking you’ll be able to submit a second offer. The seller may simply decide to accept an offer from the competing buyer. Make sure your first offer is a strong one if you want to be taken seriously.
- Removing all contingencies: Removing all contingencies from your offer will be appealing to sellers, but you’re putting yourself at serious risk. For instance, if a home inspection discovers significant issues, you won’t be able to back out of the offer without incurring a financial penalty. If you plan to remove contingencies from your bid, be careful about which ones you remove.
These are a few of the common mistakes you should avoid if you find yourself in a homebuyer bidding war. It’s essential that you don’t get too caught up in a bidding war and proceed cautiously.
For more homebuying tips, be sure to contact us at Randy Lindsay today.