How to Win a Home Bidding War
Q: Our local real estate market is really hot. We keep getting outbid for homes we want to buy. Do you have any advice on winning a home bidding war? Kate, Summit, NJ
A: Hi Kate, I’m sure it’s frustrating to pick a house you like only to lose it to someone else. As far as bidding wars go, the first and most important piece of advice I’ll offer you is 1) set your financial boundaries before you start making offers to purchase—this will protect you from paying too much in the heat of the moment. 2) The second tip is to start strong & serious—you do not want to look like a tire-kicker in a home bidding war 3) Know when to walk away, negotiations aren’t always going to work in your favor.
When you walk away, sometimes the other party will come back to you later on-and if and when they do, you’ll have an even stronger negotiating position to work from. You can always win a bidding war by paying too much. Unfortunately, when you pay too much you may actually win the bidding battle but lose the personal finance war.
Thanks for your question, Kate, good luck.
For more real estate tips and information, visit my blog at geraldlucas.com.