Well folks, as anticipated, bidding wars are back with a vengeance, at least here in San Francisco.

If I were a real estate agent, I would never encourage my clients to engage in a bidding war. Winning such a war often leads to what’s known as the “winner’s curse.” This term signifies paying a price that exceeds what anyone else in the bidding war was willing to pay, putting your finances at greater risk if the real estate market takes a downturn.

Personally, I avoid bidding wars because I know my emotions can cloud my judgment. It’s akin to my approach to poker—I refrain from heavy drinking to keep a clear head for rational decision-making. And for those looking for love, take off those beer goggles!

This post delves into the reasons why people enter property bidding wars. I aim to comprehend why potential property owners disregard my advice

Keep reading this article on Financial Samurai.

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