Panic Buying a House? 5 Things to Avoid At All Costs

Sometimes, you just need to buy a house quickly. Maybe your job got transferred, you need to be near family, or you just want to invest in a market before mortgage rates rise any higher.

Whatever the reason, it's not the ideal conditions to buy property under -- and it can often mean taking unnecessary risks.

Do you want to safeguard your best interests (and cash) next time you buy on a tight timeline? Here's what to avoid.

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It can be tempting to just bid over the asking price to beat out other buyers, but tread carefully. While it might win you the home, what does it mean for your long-term returns? Will you own the home long enough to make up for those extra costs? Can you afford the higher monthly payment? If you're renting it out, can you justify the higher rents to make up for it? Crunching the numbers is key here.

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It's pretty common to waive contingencies these days -- particularly if other buyers are gunning for the property. If you're considering this (and you just might have to), make sure you're choosy about which contingencies you skip and which you leave in.

Sure, leaving off the inspection contingency will get the seller's attention, but on an 80-year-old home that's never been renovated? You might find yourself in very expensive trouble after closing.

Always talk with your agent about which contingencies you're thinking of waiving and take into account the specific property you're looking to buy -- its age, condition, the climate it's in, and so forth. You should also consider your finances. If you waive the appraisal contingency, do you have the cash to cover a gap out of pocket? Make sure you have a backup plan for every possible outcome.

READ MORE: Can You Back Out of a Purchase Agreement?

A great agent is critical if you're buying on a tight timeline. They'll not only do some of the heavy lifting for you search-wise but also can help you with due diligence -- making sure no steps are skipped, and no added risks are being taken for the sake of speed.

If you pick one who specializes in your type of purchase (relocation, rental investment, etc.), that's even better. They'll have a handle on common problems/missteps in these transactions and can help you steer clear.

READ MORE: How to Find the Best Real Estate Agent for You

Real estate is all about location. Where your property is located will influence its future value, the rent it commands, the quality of life it offers, and so many other factors. If you want to be sure you're making a smart move for your bank account, focus on the neighborhood just as much as the home itself.

Research property values, amenities, and school districts. Talk to neighbors. Visit the community at different times of day to get a feel for traffic patterns. You can even check city hall for possible development plans in the area. The more carefully you choose your location, the smarter purchase you can make -- no matter how quickly you need to move.

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What's your ultimate goal for the purchase? To find a great rental? To buy your forever home? To increase your wealth in retirement? Your goal should drive the process, and you'll want to keep it in mind every step of the way.

Not sure whether you should bid higher and beat out another offer for that rental property? Dig into rent trends to see how long it'd take to break even. Can't decide whether a fixer-upper is worth the extra work for your family? Check out local schools, drive to the local parks and playgrounds, or ask around to see whether there are neighbors with kids.

Put your goal first and let that help you address any uncertainties or questions that might arise.

READ MORE: How to Invest in Real Estate

Don't want your fast home purchase to lead to buyer's remorse? Make sure you put in the research, crunch the numbers, and keep your big-picture goal in mind. Building a good team can help, too. This might include a real estate agent, a mortgage broker, a contractor (before you waive that inspection contingency), or even an accountant or financial advisor. Don't be afraid to lean on pros to ensure you're making the right move.

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