Keep Cool in A Bidding War
Indecisiveness, overthinking, competitiveness and rash decisions are never good, but these types of negative decision-making skills tend to be common when real estate markets are tight. When there are less options buyers may end up pursuing a home for the wrong reasons.
Today, if a great home comes on the market, it may be gone quickly. Strangely, we have found that although these homes get under contract quickly, they don't always sell, the fall out rate in tight markets appears to be higher than in "normal" markets.
It looks like in this hot seller's market buyers are "engaging" the homes, but some of these buyers are not making it all the way to the closing table. That suggests that the buying decision was not well thought out. During the due diligence period, rational decision-making returns and these buyers realize that they settled for the house because they were worried it would be the only option available. They fell into the trap of competitiveness.
It is my experience that when people were focused only on winning a bidding war, or when they had to review and review and review the design or attributes of a home, then it was definitely not the right house for them. In this market, you should be extra careful to avoid these bad decision making traps. If you commit to a contract you'll be giving over non-refundable due diligence funds, and that is expensive to you, and extremely frustrating to the sellers if you decide to move on.
So, before you enter the bidding war scene, think about why you're bidding, and remember, if you lose the war, you can still keep moving on. That house was not the only house that will ever be for sale even if it feels that way right now. Another great option will appear, I promise, you just have to be patient, and know that when the right home comes along, it will speak to you, and you just need to be ready to commit quickly.
Also, my other suggestion is to avoid wasting your time getting yourself confused and frustrated by looking at every house that comes on the market. Don't waste time looking at properties that don't fit your criteria unless your agent suggests that it may be something to look at.
Why did I add that qualifier of "unless your agent says it's something to look at?" Because a great Realtor is watching you while you look at homes, they're trying to figure out what you prefer, what speaks to you, and sometimes they realize that what you think you want and what is great for you are not the same. I can tell you story after story about deciphering clients needs and helping them find the one home that was exactly what they love. Frequently I'd have to convince clients to come see a house "for me" and then they'd fall in love. Makes me smile every darn time it happens!
So, ask your Realtor for their insights on the property you are thinking of buying. Remember our job is to help you find a great house, one that fits your needs and will be an easy home to sell when the time comes. We want to work with you for a long time, so we hope to get the best value today, and get you a fabulous sales price when you're ready to move in the years ahead. The way to do that is to help you make smart decisions based on love and logic, not desperation.