For many homebuyers, the expectation is that once they find their dream homes, they make an offer, and quickly move towards closing. However, this does not always happen. Sometimes, higher and more reliable bidders move in and purchase the homes. If you are planning to place a bid on a home, here are some ways you can avoid missing out on your dream home.
Know the Market
One of the biggest mistakes potential homebuyers make is to shop for a home in a market they cannot afford. Making a play for a home in a market that usually sells for more than you can pay usually results in being outbid all the time.
Before shopping for a home, talk to your real estate agent about what you can reasonably afford. He or she can help you find homes within the price range indicated. The agent also knows how much of a cushion to leave for a potential bidding war.
Avoid Placing Too Many Conditions on Your Offer
It is not unusual for bidders to add conditions to their bids. However, too many conditions can make it more difficult to win on your dream home. Sellers usually want to get in and out on a real estate deal. The more conditions that are added to a bid, the more unlikely it is that the seller can close the deal quickly.
When considering conditions to add to your offer, try to stick to the basics. For instance, asking for the right to beg off on an offer if the home inspection fails is a reasonable condition. If you are unsure of which conditions are important, ask your agent to help.
Evaluate Why You Lost a Bid
If you have lost a bid in the past, the experience can actually work in your favor. Review why you lost the bid. You can use the experience to shape your future bids.
For instance, if you lost the bid because you did not have proof of financing available and the other buyer did, you need to focus on having proof available when you place your next bid. You can get a pre-approval letter from your lender to show the seller.
Your full service real estate agent has experience with placing bids and can help you develop a strategy for winning the home you want. If you work with an agent from the beginning, he or she can guide you through the entire process from searching for a home to closing.