You’ve been searching high and low for your dream home, and lo and behold there it is! It’s even in the perfect location. The only problem is that it appears to be someone else’s dream home, too.
In cases like this where a bidding war might ensue, you could be inclined to overspend. After all, you may never find another home like this again. The issue is that, when the time comes down the road to resell the home, overpaying for it now may make it extremely difficult to resell it later on.
However, your decision to enter into a bidding war and get the home of your dreams may not be entirely a bad one either – under certain circumstances – and as long as you’ve done your homework.
For example, if you truly plan to reside in the home for the long term, then it could make more sense to pay the additional amount for it and get the house that you really want, rather than settling for one that you won’t truly be happy with.
Prior to doing anything, though, it is important to do the following:
- Take a look at some comparable homes in nearby areas that have access to the same (or similar) amenities. This includes schools, if you have young children.
- Research the selling prices of homes in the area in order to determine what the “comps” have been going for recently.
Once you have this information, you will be better able to give yourself a bid “ceiling” – a purchase price above which you will not go, regardless of how badly you want the house. This can help you to keep your offer in check – and from drastically overpaying – even for the “perfect” home.
If you’re considering making a move soon, getting an estimate of you current home’s value can help. Contact Us and we’ll provide you with a no obligation analysis, and help you to find your dream home in the Bakersfield or surrounding area.