Think for yourself. If everyone else is offering to waive a financing contingency, you may also be tempted to do so, even though this is more risk than the typical financed homebuyer should be willing to take on. Behavioral economists call this herding. Remember to only make offers that make sense for your own financial situation.
Take a breather if you need it. After losing out on bidding war after bidding war, you may become exhausted to the point that you just want it to be over with. This could lead you to either give up too soon, or to buy a home that you may end up regretting. Behavioral economists call this decision fatigue.
“Buyers start out excited,” said Salt Lake City Redfin agent Chad Snow. “Then once we go through what it’s going to take to win, it makes them more apprehensive. Fatigue happens around offer three or four. That’s when they ask me, ‘is this even going to be possible?’ But I have had many success stories. One of my buyers had been beat out on two different homes, but the third try was the charm. We didn’t have the highest offer price, but we beat out three other buyers thanks to some close cooperation and contact with the listing agent.”