Seattle Bidding War? How to Avoid Overpaying on a Home

Dave Hanson
Published on March 23, 2016

Seattle Bidding War? How to Avoid Overpaying on a Home

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Buying a home at an overvalued price can pose a lot of challenges. For instance when it is time for reselling the home it can be a concern that money will be lost if the home isn’t really worth the price you paid but unless you are planning on selling quickly, overtime, the value should align with the price in Seattle’s market. Still, note property sellers can employ certain tricks to make the unsuspecting home bidders pay excessively for their new potential homes. Overpaying for a property or getting involved in a Seattle bidding war is the last thing any potential home buyer wants to do and perhaps the only way such a situation can be avoided is by looking at the following aspects.

Look at the Recent Housing Prices Trends – Seattle Bidding War

There are many factors that are considered when determining the real value of a home property. Financial fluctuations may play a significant role however it is aspects such as the house location, size, condition and amenities that are given most attention. For this reason, it is possible to come across similar properties in different locations going for extremely different price margins. Unfortunately, some real estate agents may manipulate some of these factors to their advantage and make potential buyers to pay more than they should. To evade some of these traps it is important that price comparisons should be done by looking at the price trends for similar properties which were recently off the market. Good real estate firms usually give out such kind of data and this can be used to make a fairly accurate price worth on a given property. When you use these numbers, it can help you avoid overpaying if you find yourself in the middle of a Seattle bidding war on your dream home.

Consider the Costs of Repairs and Renovations – Seattle Bidding War

Having emerged victorious from a Seattle bidding war is usually a heartwarming moment for any new home owner. The one hidden aspect is that buying a home is not usually about paying the mortgage. After looking at the new property many new homeowners are usually compelled to check into aspects like repairs and renovations so as to have a home environment with fully functional amenities and be able to live up to the intended customizations. All these do cost money and of course, the cost of these repairs or changes are not in any way included in the bidding price. Prior to accepting a home property bidding challenge, it is important to thoroughly assess the given property. If the repairs or renovations may stretch your budget to unworthy limit, then it implies that the given property may not be that suitable for your finances. Make sure to talk to your realtor and look into what type of home buying inspection is right for your home.

Employ the Escalation Cause – Seattle Bidding War

Many real estate experts do consider this to be the best method for keeping down the costs when bidding for a home. Any escalation clause usually does display the initial price listing and this is expected to rise by a small amount during the Seattle bidding war. The benefit of employing this clause is that it enables a potential new owner to see whether if the given property can go for a price which is lower than that registered in the escalation cause. This way it is possible to avoid over paying for a home and greatly increase the possibilities of owning the given property at a price which is far below than the intended target.

Stick to Your plans By Avoiding the Mind Games – Seattle Bidding War

Again it is important to stick to your home pricing goals even if you are in a Seattle bidding war. Auction of real estate properties is just like any other business. This implies that the price of a given home can be overvalued just to ensure that the auctioneer gets to make excessively fat profits from the unsuspecting bidders. Always stick to your value if you believe it is the right one. To the surprise of many, some auctioneers usually do come back and take the initial amounts which were rejected for being “low” or just make only a slight increase which is usually not that much. It is important to review the home appraisal – this way it is possible to look at a property from a pure financial and on rational basis. This can greatly help in negotiating for a home at the right and lower price thus reducing the possibility of overpaying.

Finally, it is always advisable to exercise some patience when bidding for a property. Interests from numerous people may not actually mean that the given property is worth overpaying. This implies that some time should be set aside so as to accurately assess the given property and from this, it is possible to come up with a suitable offer which greatly keeps overpaying at bay in a Seattle bidding war.

Other information when buying your home:

  1. 10 Top Tips to Find the Perfect Home
  2. Mortgage and Home Buying Tips for Every Generation
  3. Search Seattle Home Listings: Phinney Ridge homes for Sale, Ballard Homes for Sale, Olympic Manor Homes for Sale & Fremont Homes for Sale

Wondering how to go about buying your home in Seattle WA?  It’s important you understand how to avoid overpaying in a Seattle bidding war but also how to truly find the home that’s perfect for you by talking with an agent who has been working in the area for over 20 years.  The information above should be helpful but if you haven’t hired a top real estate agent in Seattle WA yet to assist you with finding your home, contact me, and I’d love to discuss your real estate needs further!

Dave Hanson Home Team – Exceeding Expectations – 206.686.7525

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Seattle Bidding War? How to Avoid Overpaying on a Home
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