When Do I Walk Away from a Bidding War?

If you have found your dream home after months of searching, you may be prepared to start a bidding war.

A bidding war is a real estate term when the seller has received multiple offers on their home in a small period of time. This creates an environment where the seller can wait and see if a buyer is willing to raise their offers or make concessions to make their offer seem like the best option.

While a bidding war can yield the results you want, there is a time and a place to walk away from it!

When to Walk Away from a Bidding War

If you have found yourself in a bidding war, there is a time to walk away! Here’s when to throw in the towel:

1. The Home is Out of Your Budget: If you started off with your best offer, it is best to stay out of the bidding war. In a seller’s market, many buyers are offering well above asking price in cash. If you are preapproved for a certain amount, you may not be able to meet those demands.
2. The Home Needs Major Repairs: If you are anticipating putting a lot of work and repairs into the home, it may be in your best interest to find a new home. A bidding war may take the available cash you had for those repairs and leave you with a lot of projects you can’t afford to fix.