Posted on: 22 February 2017
Although summer might be the most convenient season for families to move, spring is the season in which most people choose to buy their new homes. As a result, you could wind up in a bidding war for a home that you want to buy. Making the wrong moves during the war could result in someone else being victorious. If you are planning to shop for a new home this spring, here are some mistakes you should avoid in a bidding war.
Failing to Recognize There Is a Bidding War
One of the biggest mistakes you can make when shopping for a home is not recognizing that you are in an actual bidding war. The seller could be entertaining multiple offers on a home, and if you have not placed a truly competitive offer, you could be out of the war before you realize it.
If you are not sure you are possibly in a bidding war, there is a sign you can look for. One of the indications is the number of people who showed up at the open house for the home. The more people who attended the open house, the more likely it is that the seller received at least a couple of bids.
You also need to talk to your agent. The agent can tell you if he or she has heard of any higher bids. If so, you can work together on placing an aggressive bid.
Not Making Your Offer More Attractive
Remember, the seller is not only trying to sell his or her home but also trying to get a good deal. The better your offer is, the more likely it is that you will win the home.
If you are able, offering to pay cash for the home can be a perk. If you are unable to do so, consider increasing your down payment, if possible. A larger down payment indicates that you are serious and more likely to do everything possible to ensure the sale does not fall through.
If you are considering using contingencies to improve your offer, talk to your agent first. In desperation, some buyers have offered agreements without contingencies. Contingencies are in place to protect you. If you give up some or all of them, you could be left with paying for extensive repairs or losing your down payment if the sale does not complete.
Talk to your agent to find out other ways you can avoid losing the bidding war for a home.Share