Should You Bid First, See Later?

There's a startling new trend in luxury real estate - in the big rush to get "The One" many buyers are bidding sight unseen. But this goes against everything we're told, right?

It really depends on how you go about buying a home. If you hinge your bid on being able to get financing and the home passing an inspection, you might just be able to get a great house. When the market heats up (and it does this time of year), a bid first, see later approach can help you get the home that's right for you.

Why Would You Bid First?

You want to get there first. You see a great property online that goes on the market tomorrow and you know there's going to be 10 or 20 other offers, way above asking price. You really want to buy this house, it's your dream home... what can you do?

You can get the jump on other bidder by offering the seller an earnest money deposit. If you're not local, you can ask a friend or family member to schedule a viewing and swing by for you. You could have your realtor do a FaceTime chat with you so you can see how high the ceilings are, how much the floor slopes, what kind of light it gets during the day. You'll be able to hear the noisy plane flying over every 5 minutes or the loud traffic right outside your door.

You're Never Flying Blind

With today's full suite of tech tools you're never really flying blind when it comes to buying a home. From 3D tours of luxury homes that allow you to change decor to extremely detailed MLS information and CMAs (comparative market analysis) from your realtor, what you see is usually what you get.

The Good, The Bad, and The Ugly

When you're looking at homes, you have to understand that bidding can get ugly VERY fast. Bidding sight unseen is a big leap of faith, but if you're serious about buying a home and can prove you have the funds available, it could be the way to beat the competition.

Take Advantage of the Inspection Period

You'll almost always have an inspection period when it comes to properties so make sure you take full advantage! If your bid is accepted and you go through the property and find things that were omitted (pet or cigarette odors, damaged flooring, walls or ceilings, etc.) you'll have leverage and can negotiate the price down.

Avoid Risky Short Sales and Auctions

Short sales, auctions and foreclosures may look like great deals, but you just never know what you're going to get when you do the walkthrough. If you're trying to buy a home at the height of the bidding season, you're better off just looking at non-distressed properties instead.

Don't Get Wrapped Up in Winning

Too many buyers get wrapped up in winning the bid, but not winning the house. If you know this luxury home for sale is the one you have to have, that's one thing. But if you bid on a "meh" house because it was affordable in the beginning and now it's $540,000 over asking, is it really worth it?

Give yourself a deadline of finding a home from the start and a real budget to work with so you don't end up with a money pit of your own.

Brad Miller is a luxury real estate broker for The Goodale Miller Team. GMT is the #1 team in Canada for Century 21 8 years running. Specializing in Oakville luxury real estate, including luxury Oakville homes for sale, infill building lots, condominiums and more. To view their listings of great Oakville luxury homes for sale please visit: http://www.goodalemillerteam.com/Homes.aspx