When to Walk Away from an Offer

In today’s market, it can be tough to know how to place an offer on a home. If you are searching for a home in a saturated market as a first time homeowner, you may have a lot of competition. 

With that competition comes multiple offers per home- you may run into a situation where you are competing with over 10 other buyers or more! So, if there are so many offers on the home, how will you know when to walk away from a bidding war? If you do find yourself in that situation, listen to your Realtor. They should be experienced enough to guide you! Keep these tips listed below in mind as well.

When to Walk Away From a Bidding War

So, when should you walk away from a bidding war? Here are a few prime examples that indicate you are ready and should walk away from an offer on a home:

  • It is Out of Your Price Range: If the bidding war continues and your price range is falling behind, it may be time to back out. While this ay seem obvious, you don’t want to live outside of your means. Pay attention to each offer and see how it fits into your budget. Take a look at the estimated mortgage payment and see if that can work with your income as well as your bills each month. 
  • Low Appraisals: Another big ticket item to keep an eye on is the estimated appraisal of the house. While many people may be stuck in a bidding war for a home- ask yourself- will this home appraise for what I intend to offer? Sometimes, deals will fall through because of banks and this very issue.

Ask Your Realtor

While we are in an unprecedented market, chances are, your Realtor has enough experience to navigate it. These past two years have been tough, but choosing the right Realtor is important if you are looking to find your dream home! 

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