Many headlines would have you believe that bidding wars and houses selling for over the asking price are a thing of the distant past. There have certainly been signs of the market softening a bit in favor of buyers, but bidding wars are still a thing, as well as houses fetching offers over asking price — even if it isn’t happening on every listing.

So if you’re a buyer right now, there’s still a good chance you’ve “lost” a house in a bidding war, and you’re still feeling the sting that comes with it. You may be wondering when (or if) the market will truly give you a fair shake at getting a house. Well, don’t lose hope! In fact, you may even get a second chance at a house you lost to another buyer.

According to a recent report by Axios, nearly 15 percent of pending home sales failed to close in June. Whether it was due to buyers not getting their mortgage, home inspection issues, the house not appraising for the sales price, etc., many sellers found themselves looking for a new buyer or going back to the buyers whose offers weren’t originally accepted.

So if you lost out on a house recently, there’s a chance you may get a second bite at the apple! If and when that happens for you, here are a few things to keep in mind:

• Don’t let your feelings get in the way of an opportunity. It hurts when a seller chooses another offer, and some buyers take it personally. Don’t hold a grudge and say you’re no longer interested for the sake of getting back at them for not choosing you originally.
• You may be able to negotiate a lower price than you originally offered, but don’t bank on it. There’s still a low amount of inventory, and a lot of competition, so sellers aren’t entirely desperate. If you try to lower your offer, the seller may take offense and either go with another back-up offer, or just put it back on the market.
• Don’t be too concerned with why the original buyer backed out of the deal; you may or may not get the true reason why the contract was canceled. Sure, it could’ve been due to home inspection issues, or simply buyer’s remorse. Just because another buyer had issues, doesn’t mean they were legitimate or will affect you, or that there’s something wrong with the house.

Bottom Line

Houses that are desirable and priced appropriately are still selling fast, with multiple offers, and often over asking price. So if you’re in the market to buy a home, you still need to be aggressive and make a strong offer. But if your initial offer isn’t accepted, don’t lose hope! If you find that the buyer they chose backs out and the seller checks to see if you’re still interested, be careful about lowering your offer, and don’t dismiss your second chance due to emotions or concerns about what was “wrong” with the house.

Today’s real estate market is incredibly competitive and, as such, many potential buyers find themselves competing with other buyers for the same property. Or, in other words, they find themselves in a bidding war — and how they navigate that bidding war can mean the difference between successfully purchasing their dream home, or losing out to another offer.

But what, exactly, is the right way to navigate a bidding war — and, just as importantly, what mistakes should buyers avoid if they want to successfully purchase a home? Here are a few common bidding war mistakes buyers are making in today’s market, including:

• Bidding their entire budget. In an attempt to win the bidding war, many buyers make an offer at the very top of their budget. But the home price isn’t the only cost associated with buying a home. Be mindful of additional expenses, such as closing costs, moving expenses or essential repairs. If you find yourself in a bidding war, make sure to leave wiggle room in your budget.
• Bidding with no contingencies. Many buyers are waiving contingencies — like the home inspection — in order to make their offers more competitive. But waiving the inspection contingency could leave you stuck with a house that needs more repairs than you can afford (or that you want to manage!). So while there are ways to tweak your offer to make it more competitive (for example, changing the length of escrow or increasing the down payment), you’ll want to think twice before waiving the inspection.
• Using the term “best and final offer.” Negotiations are part of most real estate deals, and it may take a few rounds of back-and-forth before the buyer and seller agree on the terms of a home sale. So, if you find yourself in a bidding war for a home you’re excited about, don’t shut down those negotiations by using verbiage like “best and final offer.”

In today’s competitive housing market, you need a partner who can serve as your guide, especially when it comes to making a winning offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.