This is a great way to pick up the parts if you lose a home that you wanted to buy to another buyer.

It is a difficult time buying a home. Housing stock has plummeted to record lows, which means there aren't many properties to choose from. Mortgage rates are now very attractive, so many buyers want to take advantage of them.

But the combination of limited inventory and buyer interest creates the conditions for a lot of competition when preparing offers. If you find a home that you want to buy, there is a good chance it will lead to a bidding war in which you and at least one other buyer try to outdo each other in the hopes that your offer will be accepted.

Bidding wars can be extremely stressful for buyers (although they are great for sellers as they usually drive home prices up). And walking away from a recent home as a loser is a blow that can be hard to take – especially when the home ripped off from another buyer among you looks like your dream home. But if you lost your last bidding war, here are a few ways to deal with it.

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1. Find out why you lost

Perhaps you lost your last bidding war because another buyer came at a much higher price that you couldn't get. Or maybe you lost to a buyer who could pay for the house in cash while you need a mortgage to buy an apartment of your own.

In general, your real estate agent can find out why your listing was unsuccessful and it is worth getting this information. That way, in case you end up in a different bidding war, you can see if you can do something differently.

For example, suppose you wanted a home for $ 500,000 but you refused to go above $ 525,000, and another buyer grabbed that home for $ 540,000. The lesson from this could be that if you are looking for a home on the order of $ 500,000, you may have to pay up to 10% more for your listing to be accepted the next time.

Of course, if another seller won by paying for cash and that's not an option for you, then there's not much you can do about it. But then at least you'll know that the price you offered to pay wasn't the problem.

2. Put your house search on pause

Because the housing stock is so small these days, bidding wars are widespread. If you can't deal with someone else just yet, click Pause on your home search. Stocks could open up over the course of the summer, especially if things continue to improve in light of the pandemic. And if you're in a situation where you're saving money month after month, a short wait could give you the leeway to place a higher bid the next time you see an offer.

Losing a bidding war can be difficult in many ways – especially if you thought you made a good offer or a series of offers. But try your best to view it as a learning experience – one that can eventually lead to your acceptance of an offer and your own place.

source https://seapointrealtors.com/2021/08/01/lost-a-bidding-war-on-a-home-heres-how-to-recover/

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