How to Compete With Other Buyers

by : Becky Herring

In a perfect world a buyer should be able to search out their dream home, make an offer on it and close without incident. But as we all know this is not a perfect world and many times home buyers end up competing with each other for their ideal property. Dealing with the reality of competing bids can be a home buyer's worst nightmare as offers increase as do stress levels. Of course this is the ideal situation for the home seller as they stand to make a tidy sum of money and even sellers who need to sell quickly will sometimes let a bidding war play out to see how high the price will go.

As I stated before, getting involved in a situation where buyers are competing for a single home can get very stressful and emotional. This is even more true if as a buyer you need to get into a home soon and get on with your life. The best thing to remember at a time like this is is that when you are emotional and stressed out it is easy to make mistakes and misjudge things so keeping a cool head is essential. Timing is also of the essence as offers can come in fairly quickly and you and your realtor need to be ready to respond on short notice so make sure that you keep the lines of communication open at all times. Another thing that you should keep in mind is that it can be easy to get swept up in a bidding war so set a top limit for yourself. The last thing you need is to win the bid war at a price that will cripple you financially. Setting a budget can be difficult when dealing with something as big as a home, but you have to keep in mind that in the years to come there will be a lot of costs concerned with the home and you have to close with a deal that you can handle financially.

In the end the sellers are going to choose the buyer that gives them the most freedom in terms of moving and the amount of money involved in the transaction. It's a good idea to try to be as flexible as possible while keeping your needs in mind. Don't be too quick to put your needs to the side just to get a specific home. There are a lot of homes out there and many of them offer similar things, make sure that the home in question really is "the one" before you get too wrapped up in bidding wars.