Bidding Wars: How to Win Every Time.
You may call them ‘bidding wars’. In real estate parlance, we tend to call them by the much more palatable moniker: ‘multiple-offer situations’. Any way you term it though, most people in the home-buying market bristle when they think of the idea. Not necessary!
For the uninitiated, a multiple-offer scenario occurs when more than one potential buyer submits a registered, binding offer to the seller at the same time. The net result is that the seller of the property in this case has the opportunity to choose to sign whichever offer they like best, and to leave the rest of the buyer hopefuls literally ‘out in the cold’ and back to the house hunt.
Sounds scary for buyers, right? It doesn’t have to be. Here’s how to always ‘win’ in a multiple offer scenario, and come out feeling positive about your decision:
The trick is to be totally honest with yourself, and to offer exactly what you think the property is worth, and not a penny more.
That concept is so critical, that I’m going to reiterate it: Offer exactly what the property is worth to you. Don’t try to ‘low-ball,’ and don’t get caught up in the competition and try to overbid and beat the other buyers. In fact, the other buyers are of absolutely no consequence to you, and shouldn’t even enter your mind. Easy!
But, why does this work? It’s simple. Let’s examine the two possible outcomes:
(A) Your offer is accepted and you buy the property. Great! Having offered what you think the property is worth, and not a penny more, you are comfortable with what you paid and happy to be moving in to your new home! Congratulations!
(B) Your offer is declined and someone else buys the property. Great! Having offered what you think the property is worth, and not a penny more, you are comfortable with the fact that the ‘winning’ buyer must have paid too much. Since you were honest with yourself up front, you knew that you’d be kicking yourself right now if you’d offered more and wound up overpaying for this property. Congratulations – you didn’t. Now back to the hunt!
Offering what you feel the property is really worth is the ‘magic bullet’ in multiple-offer scenarios. Use this trick to always come out on the good side of every potential deal.
Looking to start shopping? My team makes finding your home or investment easy with helpful advice and premium, impeccable service. Let’s chat about finding what you’re looking for.
Until next time,
Shaun Nilsson
1-888-712-7888
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