In an ideal world as a home seller, a bidding war is exactly what you dream of. But is it really?
Should you as a home seller walk away from a war? Does it all boil down to a gut feeling or is there a strategy involved? How can a seller maximize the benefit of a multiple bid?
An experienced agent is well aware that there are two basic options that work when selling a home. The traditional approach which involves establishing a reasonable asking price marginally higher than perceived fair market value. As offers come in they are shared with you on a first-come, first-served basis.
The other approach which is a more aggressive approach and can create a bidding war can really only happen when buyer demand excessively exceeds supply.
To generate competition and hopefully create a bidding war, list at or below fair market value. Your listing should include a specific date and time when all offers will be presented to you the seller all at the same time. Including a offer date allows interested parties the time to improve their offer by fulfilling most or all conditions in advance. Offers can then be submitted without the possible feeding frenzy under the traditional strategy.
Be careful with this strategy, though, because it can backfire on you. If you don't have an right type of home with the right market conditions, the result can be a sale price below market value – and you'll be a very unhappy seller.
As a buyer during a bidding war type of real estate market, It's really easy to end up paying an unreasonably high price which, under normal circumstances, would be considered outrageous. Winning the bid may be satisfying emotionally at the time, but over the long term you won't be happy if you ended up paying too much. Leave your impulse shopping for the store check-out.
To get the best possible deal, you have to keep your emotions in check and listen to your real estate rep. It can be very exciting at the time, but also painful if you don't get that particular home. Remember, it's not the only home this is or will be on the market.
Can You Win As A Home Seller or Home Buyer During a Hot Real Estate Market? Yes You Can!!
It's imperative you work with a really seasoned Real Estate Rep. though. Give Irene Bilinski a call at 613-858-1151 if you are buying or selling a home in this type of market. When you work with Irene, Real Estate Is All About You!