Buying a house, in general, can be a stressful process – but when it comes to bidding on properties, it can be easy to let your emotions and impulses get the better of you. Whether it’s a dream property or you’re just desperate to find something in your price range, it’s easy to make a mistake at bidding that can cost you for years to come. Here are some of the common mistakes you should avoid when bidding on a property:
Not preparing ahead of time
If you go into the bidding process blind, likely, you aren’t going to come out with the results you’re looking for. Getting some advice on how the bidding process works, what fees you might need to pay, and what happens if you win can be invaluable to ensuring everything goes smoothly – a massive mistake that many first-time buyers make.
Letting emotions take over
If you’re buying a property to be your ‘forever home,’ it’s no surprise that there ends up being a lot of emotion attached to the buying process. But when you’re in a bidding war for a house, the last thing you want is to let your emotions take over. That can lead to bad judgment, whether it’s making split-second decisions or bidding more than you can realistically afford. Go into the process with a level head, and you’re far more likely to come out on top.
Failing to do your research
A property can look great in a vacuum, but that doesn’t mean you’re getting the best deal for your money when it comes to the area the property is in or comparable property prices around the house. Do your research before bidding, and you’ll have a far more precise idea of what’s fair for a home. A bargain is excellent, but you might not be getting quite the deal you think if you haven’t done thorough research before promising a certain amount of money.
Getting into a bidding war
You love the property, and you’ll stop at nothing to make it your own. Often, that’s the start of a great journey into owning a home you love. But in cases where your competition feels the same, that can lead to fierce bidding wars that quickly push the value of a property up far beyond what it’s worth. No one property is ‘the one’ when it comes to bidding, so don’t have your heart set on ownership ‘no matter what’ – because it can lead to high financial costs down the line.
Not checking finances
Once you’ve won bidding on a property, you’re then obligated to purchase it. This is all well and good, but if you haven’t checked your finances ahead of time, you may find yourself unable to cover the property price when you fail to get approval for a mortgage. Check ahead of time what is available to you based on your finances, and you’re far more likely to succeed – and less likely to be faced with disappointment, or a big bill you can’t pay.