Winning & Losing a Bidding War


It's prime home buying and selling season, and if you're looking to buy in an area with low inventory and high demand, you're probably going to run face-first into a bidding war. After the housing crunch of 2008, they certainly went away fro a while, but now a recent study has found that bidding wars are back in force.

So here's the question for buyers: Do you know how to handle a bidding war, or are you going to let that dream home get away? Here are all the things you can do wrong--so you know how to do it right.

Fail to Realize You're in a Bidding War

A surefire way to lose a bidding war is to not realize there's going to be one. So, how do you know?

First things first: Know where you're shopping. If you're in one of the following markets--some of the hottest in the country, viewed two to seven times more often on than the national average--chances are, there's going to be a bidding war:

  • San Jose-Sunnyvale-Santa Clara, CA

  • San Francisco-Oakland-Hayward, CA

  • Denver-Aurora-Lakewood, CO

  • Dallas-Fort Worth-Arlington, TX

  • Oxnard-Thousand Oaks-Ventura, CA

  • Austing-Round Rock, TX

  • Columbus, OH

  • Los Angeles-Long Beach- Anaheim, CA

  • Boston-Cambridge-Newton, MA-NH

  • Raleigh, NC

  • Colorado Springs, CO

  • New Orleans-Metairie, LA

  • Palm Bay-Melbourne-titusville, FL

  • Washington-Arlington-Alexandria, DC-VA-MD-WV

  • Las Vega-Henderson-Paradis, NV

Even if you're not in one of those regions, the housing market remains tight nationwide (too many buyers, not enough inventory). So, o