What are bidding wars and how do your win bidding wars? What can you do to position yourself best?
Firstly, make sure you are working with the Right REALTOR and have conducted good market research to know if the property that you are interested is priced properly. Often these bidding wars are a direct result of under-pricing a home. In turn, we often find that following multiple bids, the winning offer is very close to the actual market price.
Secondly, keep in mind that the listing agent is hired by the seller to come up with the best sales and marketing plan to garner the most offers and highest price on their home. Under pricing is one way of marketing a property within several price ranges to draw as many buyers as possible. Many properties with list prices ending in 99 or 49 have been priced this way for a reason. For example, $699,000 could mean that the property actually has a market value ofaround$735,000 – similarly,$299,000 often means that the property has a value of over $300,000.
Thirdly, writing an offer in a multiple bid situation can be a positive. You as the buyer are able to come forward with your best and final offer. The more attractive you can make the terms for the seller – completion date, subject free or minimal subjects – the better the offer will look. Since you only have once chance your offer price should be your ceiling. That is to say if someone else buys the home for a small amount more you would be comfortable with the outcome. There is no room for negotiation here. If you win the multi-bid situation it validates the interest in, and price you paid, for your new home.
Call me for further information on how to best position yourself in these multiple bid situations.
Roland Kym
Remax Select Properties
Cell : 604 970-0393
No comments:
Post a Comment