In today’s real estate market, it is not unusual for more than one buyer to be interested in the same property. In these situations, a bidding war can occur amongst the parties that are interested in the home.
These bidding wars can have a kind-of auction-ish feeling to them and can cause the bidding buyers to start feeling some anxiety or panic that they are going to miss out on the home that they love.
However, there is a way to play the auction or bidding war aggressively, without overpaying and being forced out of your budget comfort zone.
Have A Budget In Mind And Stick To It
No matter how exciting or competitive a bidding can feel – the fact is, you only have as much money as you have. Just because you outbid someone – doesn’t mean that you will be able to purchase the house if your bid is out of your budget.
Make sure that when you go into the bidding war – in other words, when you learn that someone other than you is interested in the property – make sure that you have strong boundaries around your budget and you stick with it.
Keep An Open Communication With The Listing Agent
In a scenario where several bids are coming in on a single listing, the listing agent is not taking the time to get to know each of the buyers and why they want the house. They are only thinking about getting the best price for their client – and thus, the best commission for themselves.
As soon as you know that there is a multi-bidder situation, make sure that your agent contacts the listing agent to make your bid a bit more personal so that it stands out. This is a great way to appeal to the homeowners, who are potentially looking for a specific type of person to purchase their home and take their place in the neighborhood.
Submit An As-Is Offer
It is not uncommon for potential buyers to have contingencies when they make their offer. For instance, a buyer might submit a bid that is a bit higher but, they will ask that the seller add a fence or repair the roof.
If you are involved in a bidding war for a property, and you are really confident that you want the home, you might consider submitting an as-is offer. This means that you are offering a bid for the home and you are not asking the buyer to do any improvements or additions to the home if they accept the offer.
Sometimes this is all that a buyer needs to see in order to accept your offer and deem you the bidding war winner.