When it comes to house hunting, there’s nothing more frustrating than finding yourself in a bidding war—time and time again. Not only can it turn the quest for your dream home into outright drudgery, but, when you’ve been through it enough times, it can make it tempting to venture beyond your financial comfort zone.
The last thing you want in this economic climate is to have a giant mortgage tied around your neck. Fortunately, you have a few options. The easiest option, according to this thread on Reddit, is to offer a flexible closing. If the owner wants to get out of there ASAP, offer to close immediately. If they want a little more time, you can delay the closing to meet their schedule or offer to rent their home back to them.
Alternatively, you can look for a less expensive home—either one that’s a little smaller or outside of your dream neighbourhood. While you may have to give up a few bells and whistles, it may be worth it—depending on how motivated you are to get on the property ladder and how much you’d be giving up. Ideally, you’d want something you could live in for the next five years (even if that means renovating it down the road).
Thirdly, you can attempt to find your dream house first—and then ask the owner if they’d be willing to sell. While it’s likely a long shot, it’s worked for a couple of people I know—so it’s not impossible!
Above anything else, it’s important to get a mortgage preapproval before you enter into a bidding war. Not only will this give you a good idea of what you can afford, but prospective sellers will appreciate it as well because it will increase the chances of the deal going through. If you haven’t yet been preapproved for a mortgage and would like to be, feel free to drop me a line and we can get the ball rolling!