Negotiating your way through the maze of real estate sales and jargon raises many questions. Don’t worry. That’s why I’m here!
So, today let’s talk about bidding wars and how best to handle them. Here are a few tips to help you win!
Pre-inspect the home
You will need to write a great offer. In a multiple offer situation the offers without conditions are usually the most attractive to sellers. This comes with risks for the buyers. So how do you protect yourself? Arrange for an inspection ahead of time if possible. Yes, there is a cost involved but why take the risk? Also, the seller will have comfort in knowing that you are serious about the property which will put you ahead of the pack.
Know your limit
Set a price ceiling for what you want to pay and do not disclose it. Only tell your agent. Be pragmatic and don’t get caught up in the emotion of a buying frenzy. Your REALTOR® will provide you with comparables which should give you an idea of what is a sensible price to pay in the current market conditions.
Work closely with your Realtor
Take your Realtor’s advice on structuring your offer. A great agent will do the legwork to know the competition and will usually be familiar with how these agents operate when making an offer. In saying that, note that there always wildcards in this process. 😜
Have your deposit ready
A deposit in the form of a bank draft will show the seller that you are determined. The payee on the bank draft is normally the trust account of your agent’s brokerage. e.g. RE/MAX Crest Realty in Trust.
Provide some personal details
Give your Realtor permission to use some personal details of you and your family when they present the offer to the seller. This will show that you are real, and if you are lucky, the information may strike a chord with the seller. There have even been cases where a seller has chosen a lower priced offer because of the connection that was made!
Remember, even if you don’t win the bidding war there is still a chance that you could get the home! It is possible that the accepted offer has conditions that need to be satisfied. If this is the case, a backup offer could serve as your secret weapon should that deal go south. A little patience may pay off, so talk to your agent about how to be next in line to win that home in the end.