Now that you’ve found your dream home, it’s time to snatch it up! The only problem is, someone else is living the same dream. It may have been an underpriced home, a great investment deal, or just a unique home that rarely pops up on the market, but for whatever reason, you’ve got some competition. Getting into a bidding war tends to be a stressful experience for many buyers, so much so that some buyers will refuse to even get involved. Bidding wars usually aren’t as bad as they seem, and following these tips can help your chances at winning your dream home:

Make sure it’s right – One of the biggest questions you’ll need to answer is “is this truly my dream home?” It may sound crazy, but there can be times where the competition excites or induces an instant reaction. You may not have thought out whether this truly is your dream home, and the next thing you know, it’s yours—for $15,000 over the asking price. Once you win a bidding war, you can’t turn back without consequences. So take a deep breath and make sure you know that you want the home.

Price – Once you’ve decided that this is the home for you, it’s time to determine what the home is actually worth; both as fair market value and what you are willing to pay. As far as fair market value goes on Denver Colorado homes for sale, an experienced real estate agent can quickly pull comps for your property, and determine within a few thousand dollars what a fair price would be. Price and value, however, are extremely different, as we know. This home may be located in a great school district, or in a community with very few openings, so many people may be willing to pay more than fair market value. This is an extremely personal choice, and while your agent may want to advise you to stay at or below fair market value, some buyers feel the right house is worth a bit more. You should determine your absolute highest offer, so if the bidding war gets out of control, you know when it’s time to withdraw. Another important factor is pricing is that some lenders will not finance a home for more than it’s worth. This is to protect their interest in the property, and they will often times require the buyer to come out of pocket to cover the difference between the appraised value and the purchase price.

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