I have seen people afraid of entering into bidding wars on their dream house for some reason. For the people who are not into this real estate market, things may get a little messy and frustrating when they come across bidding wars on the property they want to buy.
But guess what! Being a professional real estate broker, I'm here to guide you throughout the process of executing a win-win bidding war state for both the seller and as well as for you, the buyer.
Let's be clear first. It's crucial to determine whether you're actually in a bidding war situation or not. For that, I'd recommend you conduct rough research for prevailing market conditions.
On top of that, an experienced real estate agent can advise you whether the demand for homes among potential buyers is more or less in that area. Think of that in this way, 'the more the number of potential buyers for a given home, the more are the chances for you of getting into bidding wars.' as simple as that.
Let me take you with a step-by-step guide that will help you to win over any bidding war on your dream house.
Understanding a Bidding War Situation
Consider yourself as a home buyer. Suppose there are multiple buyers for the same property you want to buy. A multi-offer situation arises here. This is where the bidding war begins. Your real estate agent will guide you whether you're good to raise your bidding or you should wait to seek a better opportunity. When you both agree to raise your bidding price for a given house, congrats, you're into the bidding war zone. Be aware that there are some general rules that every potential home-buyer and home-seller need to abide by:
For every offer made for a particular property, a real estate agent must disclose all the offers available for that property.
Real estate agents must inform the potential buyers if there is any change in their commission rates during the process.
There must be a specific representative for both buying and selling parties. Additionally, both parties need to be aware of each others' representatives.
For any updates in offers or new offers made, real estate agents must inform the buyers. Now that you have the basic guidelines that every home buyer and seller must follow, it's your turn to expand some of the crucial things that can help you close the deal in the most profitable position.
The buyer has to make a bid in written form and be aware of all the additional offers.
The seller can start the reviewing process once the offer has been made.
Buyers have the authority to make changes to their original offers if a new bidding offer comes across during the review process.
The seller is the most authoritative person in the room. He can demand specific buyers to raise their bids or allocate with other buyers. It's your call to pay that amount of money the seller demands or to look for another great opportunity.
Finally, all parties must be informed that the deal has been closed when the seller accepts a given offer for the property.
My Recommendations for Winning the Bidding Game
As an experienced real estate broker, I'm going to list some of my expert recommendations intended to bring the best possible outcomes for you. Here we go:
Make an offer they can't refuse.
Weiss rightly explains one of the old but gold mantras to become victorious in the bidding process —Make an astonishing little expensive but a more valuable offer than other buyers in the queue. Sellers are always on a hunt for the most profitable offers for their properties. After having a proper discussion with your real estate agent, decide on a significant and heavy price in the bucket containing all the offers.
If you think the house is worth the price you're going to put in front of the seller, you can probably beat the competition and close the deal as early as possible and without any hassle. A winning situation for both the buyer and the seller!
Don't be afraid of seeking another opportunity.
The goal is not to win a bidding war but to win it in the most profitable condition for you. Real estate is a hot market. Sometimes, the prices of the properties may get over-priced.
If you're into this scenario, don't hesitate to find a better offer than the current. Expert realtors can make you choose the right house as per your requirement. Sometimes, high bidding offers made for a move-in kind of house can be considered more reluctant than fixer-upper houses. You'll have to pay much less for those, and additionally, you have the opportunity to remodel the home as you want. All you have to do is sit on a chair and calculate the overall expenses for that house. Then, you'll be able to know whether the deal is profitable or not.
Keep it simple, stupid!
Last but not least, keep things simple. Don't fall into many complications while deciding about the price of your dream house. Follow the advice of your realtor, do your self-analysis, and you'll be able to conclude if you're okay to pay that much amount or not. Just figure out the worthiness of the house you're interested in. Make an excellent and worthy offer that would sound great for both parties, buyers and sellers. On top of that, let the real estate agent do his job. Keep it simple and clear. The bidding war will be yours!
How to Win the Bidding War — The Takeaway
The real estate market is hot — being an unconnected person, it can be a little hard to be hopeful to purchase your dream home. However, an excellent real estate professional can guide you through the process smoothly with much less hassle. Experts say that keep exploring for the right kind of properties for you and keep playing the bidding wars for the property you like; you'll get what you want for sure.
P.S.: I am a professional and dedicated real estate broker who loves to help people possess their dream properties. I have the capability of turning your investments into extraordinary results. If you have any upcoming real estate projects coming your way, let's get in touch!
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