The #1 mistake when you are in a bidding war:
To bid every last dollar you have.
The market in Chicago and the surrounding suburbs is on fire!
Homes go for thousands over the asking price. Buyers are dropping most if not all of the contingencies.
Sometimes I think they just getting caught up in the process & just want to win.
That’s why there's a high number of cancelations when there are bidding wars.
When the sellers ask all parties for their highest & best offer, buyers are throwing in every last penny in their budget.
This is a huge mistake. Homes always need maintenance. What if you move in and 3 months later the home needs a new roof? Or the HVAC system quits?
You'd have no money to cover these expenses.
Another consideration; What if the appraisal is low?
It means the bank has determined the house is not worth what you are paying.
You have to make up the difference with a larger down payment.
If buying the house is going to drain every penny you have, this may not be the right house for you!
