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My First Place: Lessons Learned
Seven My First Place homebuyers admit their biggest rookie blunders and reveal recession-proof lessons to guarantee home buying success
By FrontDoor.com | Published: 10/20/2009
A smart bidding strategy can mean the difference between an offer that's ignored and an offer that's accepted.
Lesson #21: Low-balling doesn't always pay off
Justin and Sarah bought their first place in Scottsdale, Ariz., but before they finally closed the deal, they had to endure the discouraging feeling of being outbid or rejected multiple times. From the beginning, Justin and Sarah were adamant about not spending more than $240,000. Unfortunately, by looking for homes at the top of their price range but making lowball offers -- plus asking sellers to contribute to their down payment and closing costs -- their offers looked weak and were rejected, outbid or ignored every time. If you find yourself incurring multiple losing bids, a change in strategy is in order. By giving a little bit, you can get a lot in return.
Learn More: When to Make a Lowball Offer >>
Justin and Sarah bought their first place in Scottsdale, Ariz., but before they finally closed the deal, they had to endure the discouraging feeling of being outbid or rejected multiple times. From the beginning, Justin and Sarah were adamant about not spending more than $240,000. Unfortunately, by looking for homes at the top of their price range but making lowball offers -- plus asking sellers to contribute to their down payment and closing costs -- their offers looked weak and were rejected, outbid or ignored every time. If you find yourself incurring multiple losing bids, a change in strategy is in order. By giving a little bit, you can get a lot in return.
Learn More: When to Make a Lowball Offer >>
Lesson #22: Change a bid strategy that's failing
Tweaking your bidding strategy can make the possibility of getting the house you want much more realistic. Justin and Sarah learned that you have to be smarter, faster and closer to the original asking price in order to put in a competitive bid. The offer should be strong enough to at least hit the seller's base price. The key to remember is if you would like the sellers to do something for you, such as contributing to closing costs or the down payment, then you need to get as close to their asking price as possible.
Learn More: How to Make an Offer on Your First Home >>
<< Lessons 17-20 I #1 Tip for Buying Your First Place >>
Keywords: home, house, real estate, buy a home, first-time homebuyers, My First Place, HGTV, tips, advice, inspection, down payment, offers, neighborhood, financing, loan, mortgage, home improvement, renovation