7 Things To Avoid When Bidding On A Home

Dated: April 5 2022

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Things to Avoid when Bidding on a Home….

(content pulled from realtor.com article by Lisa Mandell)

 

  1. Bidding every last penny

If you bid every penny on a home, you run the risk of not having funds to make repairs after closing.  Especially with so many of our homes being sold “as is” and buyers are waiving inspections.  So there may be a plethora of issues to fix after closing. 

 

  1. Bidding with Contingencies

The biggest and most obvious contingency is a home sale.  These offers will get tossed prior to any others because of the unknown and potential risk for the seller.

Other contingencies include doing a home inspection.  As this allows Buyers to terminate after an inspection, by only waiving repairs.  This is anther turn-off for Sellers. 

 

  1. Bidding with No Contingencies

In other markets Buyers can still win homes by doing a home inspection and having the right to terminate after a home inspection.  This clearly isn’t favorable in the eyes of a Buyer, but unfortunately what Sellers are looking for right now.  

 

  1. Assuming you’ll get a second change

Sellers are very rarely countering offers right now.  They have so many to choose from, they’re accepting the Buyer who puts their best foot (or offer) forward.  

 

  1. Using the term “best and final”

This seems to be an HGTV term and not happening much in our market, but Buyers in today’s market need to be flexible and giving.  

 

  1. Using an escalation clause

An escalation clause automatically increases your offer by a certain amount above other offers.  These are not always taken into consideration when other Buyers have presented their best and highest offer up front.  And as started in #4 you might not get the opportunity.

 

  1. Not knowing a home’s true value

Many sellers are pricing their home under market value or under the actual value of what they’re worth.  Make sure you use a Realtor who knows how to pull a home’s value and can advise you what similar homes are selling for.  

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Amy Paul

I was born and raised in Columbus, graduated from Bishop Hartley High School, then received a business degree from Butler University in Indianapolis. I have 17 years of residential real estate with bo....

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